INTEREST U/S 234B, 234C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2010 ONE OF OUR CLIENT HAS TO PAY TAX ON THE BASIS OF BOOK PROFIT . MY QUESTION IS WHEATHER INTEREST U/S 234B AND 234C WILL BE APPLICABLE? THE COMPANY DOES NOT PAY ANY ADVANCE TAX AT ALL.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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01 August 2010 Interest under section 234B and 234C, cannot be levied when book profit is computed under section 115JA.
Snowcem India Ltd. vs. Dy. CIT (2009) 313 ITR 170 / (2009) 221 CTR 594 / (2009) 18 DTR 58 (Bom).

srinath

srinath (Expert)
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01 August 2010 the book profits computed under section 115JB shall be deemed to the total inocme of the assessee for the purporse of payment of any tax under IT act. therefore if they fail to pay advance tax on such profits then it is liable for 234B and 234c interest

kotak mahindra finance ltd.265 ITR 114 (bom) and circular no.13/2001

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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01 August 2010 Yes.. interest u/s 234B & 234C will be applicable.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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01 August 2010 I THINK SRINATHJI AND PRADIPJI DOES NOT SEE THE CASE LAW AND THE DATE. THE CIRCULAR GIVEN BY SRINATHJI IS VERY OLD.
BOTH OF YOU ARE NOT UPDATED.

Pankaj Jhawar

Pankaj Jhawar (Expert)
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02 August 2010 Thanks

srinath

srinath (Expert)
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02 August 2010 https://in.search.yahoo.com/search?ei=utf-8&fr=slv8-msgr&p=Jindal%20Thermal%20Power%20Co.%20Ltd.%20vs.%20DCIT%20and%20Anr.%20%5b286%20ITR%20182%5d&type=

pl read the case law and u could understand the that 234B and 234C are liable for 115JB. they ve referred snowcem case in tat

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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03 August 2010 Updated CA.Sanat Pyneji....your unprofessional comments are totally uncalled for. Behave professionally and refer the following and update yourself properly:

Provisions of Sec. 234C are attracted even in a case where a company is assessed on the income computed u/s. 115JA.
Asst CIT v Asima Syntex Ltd. (2009) 18 DTR 91 (Ahd)(SB)(Trib).

Sub-section (4) of section 115JA does make a difference in comparison to the provisions of section 115J and definitely ensures that except to the extent of the artificial calculation of total income as provided in sub-sections (1) and (2) of section 115JA, all other provisions of the Act including sections 234B or 234C applies to every assessee envisaged within the scheme of section115JA. -Decided by: HIGH COURT OF KARNATAKA, In The case of: CIT v. Brindavan Beverages Ltd., Appeal No.: ITA Nos. 320, 325, 597/ 2004 and 2971/2005, Decided on: September 30, 2009

srinath

srinath (Expert)
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03 August 2010 and the snowcem case is argued in the entirely different manner. so one should look at the facts of the case before following the judgement....

only under section 155J no 234B and 234C. due to the subclause (4) of section 115JA and subclause (5) of 115JB one should def pay the interest and as pointed out by pradeepji i too ve highlighted the case where even the snowcem case has been discussed

kindly go through the link and u would come to know the acutal facts of the case

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