234 abc interest if unit is paying only mat

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Naved (Querist)

01 October 2011 Dear Experts
If a company is paying only MAT u/s 115JB, Interest of 234ABC will also paid by the same.
Please reply

Thanks

CA Navin Jain

CA Navin Jain (Expert)

01 October 2011 Yes, provision of sec 234ABC is also applicable.

Message likes : 1 times

Naved

Naved (Querist)

01 October 2011 BUT IN HIGH COURT JUDGMENT OF BISCUIT QUALITY CO. HAS RULLED OVER THIS
SIR

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

01 October 2011 All companies are liable for payment of advance tax having regard to the provisions contained in section 115JB. Consequently ,the provisions of section 234B and 234C would also be applicable where facts of the case so warrent.
Citation:-
1) CBDT Circular No. 13/2001 dated 9/11/2001.
2) Madras Pharmaceuticals (P) Ltd Vs. DCIT (2008) 24 SOT 180 (Mum-Tri).

Preety Parik

Preety Parik (Expert)

01 October 2011 The querrist referred to Case of Buscuit Kwality Which is in fact Kwality Biscuits Ltd, referred by Karnataka High Court. Refer to the case of JCIT VS Rolta India Ltd decided by Hon.Supreme Court where the decision of Kwality Buscuit has been considered and held that Interest provisions of 234B and 234C makes no distinction between companies and MAT companies. Hence MAT companies are too subject to interest provisions u/s 234B and 234C

https://itatonline.org/archives/index.php/jcit-vs-rolta-india-ltd-supreme-court-even-s-115j-115ja-book-profit-cos-liable-for-advance-tax-s-234b-interest

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