|DATE:||(Date of pronouncement)|
|DATE:||January 8, 2011 (Date of publication)|
|Click here to download the judgement (rolta_115JA_234B.pdf)|
Even s. 115J / 115JA Book Profit Cos liable for advance-tax & s. 234B interest
The Supreme Court had to consider whether advance tax was payable on book profits u/s 115JA and whether for default interest u/s 234B could be charged on the tax calculated on book profits u/s 115JA. HELD deciding the issue against the assessee:
S. 115J/115JA are special provisions. For purposes of advance tax the evaluation of current income and the determination of the assessed income had to be made in terms of the statutory scheme comprising s. 115J/115JA. Hence, levying of interest was inescapable. The assessee was bound to pay advance tax under the scheme of the Act. S. 234B is clear that it applies to all companies. There is no exclusion of s. 115J/115JA in the levy of interest u/s 234B (Kwality Biscuits Ltd vs. CIT 243 ITR 519 (Kar) (SLP dismissed in 284 ITR 434) considered).