No interest could be levied u/s 234B and 234C for non deposit of advance tax on MAT

INCOME-TAX APPELLATE TRIBUNAL and MUMBAI D BENCH

I. T. A. No. 6382/Mum/2013 (assessment year 2010-11).

ROCKLINE DEVELOPERS P. LTD. ...........................................................Appellant.
v.
INCOME-TAX OFFICER ...........................................................................Respondent

RAJENDRA (Accountant Member) and DR. S. T. M. PAVALAN (Judicial Member)

Date :February 21, 2014.

Appearances

S. K Tyagi, Vimal punmiya and Himanshu Gandhi, for the appellant. .
A. C. Tejpal, for the respondent.

Section 115JB, 234B& 234C of the Income Tax Act, 1961 — MAT — No interest could be levied u/s 234B and 234C for non deposit of advance tax on MAT

FACTS:

After ascertaining the book profit u/s 115JB, AO disallowed the claim of deduction u/s 80IB(10) as such the book profit was not to be reduced by claim of deduction and thus computed taxable income and levied interest u/s 234B and 234C. On appeal by assessee, CIT(A) confirmed the action of AO. Being aggrieved, assessee went on appeal before Tribunal.

HELD,

that the decision of apex court in case of Rolta India Ltd has been passed on January 7, 2011. However, during the relevant year under consideration, the law in this point has been governed by the decision of apex court in the case of CIT v. Kwality Biscuits Ltd. according to which no interest was chargeable u/s 234B and 234C for non payment of MAT in advance tax. Accordingly, no interest was chargeable. In the result, appeal was answered in favour of assessee.

ORDER

The order of the Bench was delivered by

DR. S .. T,M. PAVALAN (Judicial Member).-This appeal filed by the assessee IS directed against the order of the learned Commissioner of Income-tax (Appeals)~20, Mumbai, dated September 16, 2013 for the assessment year 2010-11.

In this appeal, the main ground '/B" raised by the assessee relates to the decision of the learned Commissioner of Income-tax (Appeals) in confirming the order of the Assessing Officer levying interest under sections 234B and 234C of the Act to the extent of Rs. 2,90,22,007 and Rs. 45,12,423 (sic) respectively,

The relevant facts are that after ascertaining the book profit under section 115JB, the Assessing Officer had disallowed the claim of deduction under section 80-IB(10) as such the book profit was not to be reduced by claim of deduction and thus computed taxable income and tax thereon which was inclusive of interest under section 234B of Rs. 2,90,22,007 and interest under section 234C of Rs. 45,12,432. On appeal, the learned Commissioner of Income-tax (Appeals) confirmed the action of the Assessing Officer relying on the decision of the hon'ble apex court in the case of Joint CIT v. Rolta India Ltd. [2011J 330 ITR 470 (SC).

Having heard both sides and perused the material on record, it is pertinent to mention that the decision of the hon'ble apex court in the case of Rolta India Ltd. [2011] 330 ITR 470 (SC) has been passed on January 7, 2011. However, during the relevant assessment year under consideration, the law on this point has been governed by the decision of the hon'ble apex court in the case of CIT v. Kwality Biscuits Ltd. [2006] 284 ITR 434 (SC) according to which no interest has chargeable under sections 234B and 234C for non-payment of minimum alternate tax in advance. Since this difference in the legal position as applicable to the case of the assessee has not been appreciated by the authorities below, we are of the considered view that the authorities below are not justified in confirming/ levying the interest under sections 234B and, 234C of the Act and hence 'the same are deleted.

Since the other issues raised in ground No. /I A" becomes merely academic in view of the aforementioned adjudication on the main issue the same is dismissed as requires no adjudication. .

In the result, the appeal filed by the assessee is allowed.

The order pronounced in the open court on this 21st day of February, 2014.

[2014] 31 ITR [Trib] 123 (MUM)