Section 234B read with sections 115JA, 207 and 234C of the Income-tax Act, 1961

Last updated: 24 September 2007

Court :
IN THE ITAT MUMBAI BENCH ‘C’

Brief :
Section 234B read with sections 115JA, 207 and 234C of the Income-tax Act, 1961 – Advance Tax – Interest for default in payment of – Assessment year 2000-01 – Whether total income computed under provisions of section 115JA is liable to advance tax and also to levy of interest under sections 234B and 234C – Held, yes – Assessing Officer charged interest under sections 234B and 234C on book profit of assessee computed under section 115JA – Whether Assessing Officer had rightly charged interest in question – Held, yes FACTS The Assessing Officer disallowed the assessee’s claim and charged interest under sections 234B and 234C on the book profit computed under section 115JA. On appeal, the Commissioner (Appeals) held that the Assessing Officer was not justified in charging interest under sections 234B and 234C on the book profit computed under section 115JA. On appeal to the Tribunal by the revenue :

Citation :
Assistant Commissioner of Income-tax,* 9(1), Mumbai v. Crystal Granite & Marble Ltd. K.P.T. Thangal, Vice President and D.K. Srivastava, Accountant Member IT Appeal No. 5948 (Mum.) of 2003 [Assessment Year 2000-01]