Interest u/s 234B & C when tax u/s 115JB

Tax queries 1728 views 3 replies

Chintan Shah

534 Points Joined October 2009

Friends,

Recently I have read two judgements, one in case of Jindal Power and other the case of Kwality biscuits rendered by two highcourts. Definitely the one in case of Jindal power is on Sec 115JB while the one in case of Kwality Biscuits is u/s 115J and also old than in case of Jindal power. Both judgements contradict each other. Both are on the same point as depicted in subject of the query. I know that since the case of jindal power is earlier one it may prevail. But is there a judgement of Supreme court on this subject. If yes please tell me.....

Replies (3)

Amir

Learner

4016 Points Joined December 2009

Dear Chintanshah,

ALLL THIS CONFUSION IS BECOS OF CHANGES IN THE LAW...........

The judgement in the case Kwality Buiscuits was w.r.t Sec 115 J whereas the Judgement in case of Jindal thermal Power was w.r.t Sec 115 JA,

Now all these Sec i:e 115J, 115 JA & 115 JB - begins with Non obstante Cluase w.r.t entire Income Tax Act but in Sec 115 JA & Sec 115 JB - there is subsection that

Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section.

Now this subject was not there in Sec 115 J, therefore interest u/s 234B , 234C CANNOT BE CHARGED U/S 115 J........So none of the judgement is contradictory to another it's just that these are based on laws applicable on different points of time.

But now since 115 JB has this subsection there is no doubt that interest u/s 234B & 234C will be charged in case of MAT.......