The Assessing Officer computed the assessee\u2019s book profit under S. \u00a0115JB\u00a0 of the Act and charged interest thereon under S. \u00a0234B\u00a0and\u00a0234C of the Act \u00a0. The CIT (A) deleted the interest\u00a0 by following the judgement in Kwality Biscuits Ltd.\u00a0v.\u00a0CIT\u00a0[2000] \/243 ITR 519 (Karn) (HC)\u00a0\u00a0 Appellate Tribunal\u00a0 referred the decision in Jt. CIT\u00a0v.\u00a0Rolta India Ltd.\u00a0[2011)\u00a0 330 ITR 470 (SC) wherein the Court held that where MAT companies defaulted in payment of advance tax in respect of tax payable under S.\u00a0 115JB of the Act\u00a0 it was liable to pay interest under S. 234B and 234C of the Act. However, according to the\u00a0 Appellate Tribunal, the judgment of the Supreme Court in\u00a0Rolta India Ltd.\u00a0(supra) was delivered subsequently which would not discredit the bona fide reason entertained by the assessee in not depositing the advance tax on MAT in view of the prevailing judgment of the Karnataka High Court in\u00a0Kwality Biscuits Ltd.\u00a0(supra) which was then holding the field. Accordingly\u00a0 the Appellate\u00a0 Tribunal held that there was no reason to interfere with the finding of the first appellate authority, albeit on a different ground.\u00a0 On appeal by the revenue the Court held that\u00a0 in Star India (P.) Ltd.\u00a0v.\u00a0CCE\u00a0[2006] 280 ITR 321 (SC) , considered the question of payment of interest in default of payment of the tax in the context of service tax it was held that liability to pay interest would only arise on default and is really in the nature of a quasi punishment\u00a0 which is followed\u00a0 in CIT\u00a0v.\u00a0JSW Energy Ltd.\u00a0[2015] 379 ITR 36 (Bom.)(HC)\u00a0 .Accordingly the High Court up held the order of the Appellate Tribunal by observing that\u00a0 \u00a0when there was\u00a0\u00a0 no liability to\u00a0 pay advance tax on book profits as per the ruling of High Court\u00a0 and subsequent over-ruling of\u00a0 High Court decision by Supreme Court , interest not Chargeable. \u00a0\u00a0(AY.2004-05, 2005-06)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 234B : Interest – Advance tax -Book profit – No liability to pay advance tax on book profits as per the ruling of High Court – Subsequent over-ruling of High Court decision by Supreme Court \u2014 Interest not Chargeable.[ S. 115JB ,234C ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-12730","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3jk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12730"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12730\/revisions"}],"predecessor-version":[{"id":17713,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12730\/revisions\/17713"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}