SYNCHEM CHEMICALS (I) P.LTD, MUMBAI V. DCIT RG 10(1), MUMBAI

ITA 249/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3752 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 11-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 234B; 115JB; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI SANJAY GARG, JM ./ I.T.A. NO.249/MUM/2011 ( / / / / ASSESSMENT YEAR :2007-08) SYNCHEM CHEMICALS(I) P.LTD 159,CST RD, KALINA MUMBAI 400098 / VS. DCIT RG 10(1 ) AAYAKAR BHAAVAN, MUMBAI 400051 ! ./ PAN : AAECS5576Q ( # / // / APPELLANT ) .. ( $%# / RESPONDENT ) # & ' / APPELLANT BY : MS. VASANTI PATEL $%# & ' / RESPONDENT BY : MS. RAJARSHI DWIVEDY & ()! / // / DATE OF HEARING : 01.04.2013 *+ & ()! / DATE OF PRONOUNCEMENT : 15.05.2013 , - / O R D E R PER SHRI SANJAY GARG, JM : PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE COM PANY AGAINST THE ORDER OF THE CIT(A) DATED 10.11.2010. 2. THE ASSESSEE IN HIS SOLE GROUND OF APPEAL HAS CH ALLENGED THE LEVY OF INTEREST U/S 234B & 324C ON THE INCOME CALCULATED U /S 115JB OF THE INCOME TAX ACT. AT THE OUT SET, IT MAY BE NOTICED THAT THE ISSUE UNDER CONSIDERATION IS SQUARELY COVERED BY LAW LAID DOWN OF THE HONBLE SU PREME COURT IN JOINT ITA NO.249 /M/ 2011 ASSESSMENT YEAR 2007-08 2 COMMISSIONER OF INCOME TAX V. ROLTA INDIA LTD.[(2 011) 330 ITR 470 (SC)] ,WHEREIN THE HONBLE SUPREME COURT HAS HELD THAT TH E INTEREST U/S 234B & 234C SHALL BE PAYABLE ON FAILURE TO PAY ADVANCE TAX IN RESPECT OF TAX PAYABLE U/S 115JA/115JB OF THE INCOME TAX ACT, OBSERVING AS UNDER- IN OUR VIEW, SECTION 115J/115JA ARE SPECIAL PROVI SIONS. SECTION 207 ENVISAGES THAT TAX SHALL BE PAYABLE IN ADVANCE DURING ANY FINANCIAL YEAR ON CURRENT INCOME IN ACCORDANCE WITH THE SCHEME PROVIDED IN SECTIONS 208 TO 219 (BOTH INCLUSIVE) IN RESPECT OF THE TOTAL INCOME OF THE ASSESSEE THAT WOULD BE CHARGEABLE TO TAX FOR THE ASSESSMENT YEAR IMMEDIATELY FOLLOWING THAT FINANCIA L YEAR. SECTION 215(5) OF THE ACT DEFINED WHAT IS ASSESSED TAX, I .E. TAX DETERMINED ON THE BASIS OF REGULAR ASSESSMENT SO FAR AS SUCH T AX RELATES TO INCOME SUBJECT TO ADVANCE TAX. THE EVALUATION OF TH E CURRENT INCOME AND THE DETERMINATION OF THE ASSESSED INCOME HAD TO BE MADE IN TERMS OF THE STATUTORY SCHEME COMPRISING SECTION 11 5J/115JA OF THE ACT. HENCE, LEVYING OF INTEREST WAS INESCAPABLE. TH E ASSESSEE WAS BOUND TO PAY ADVANCE TAX UNDER THE SAID SCHEME OF T HE ACT. SECTION 115J/115JA OF THE ACT WERE SPECIAL PROVISIONS WHICH PROVIDED THAT WHERE IN THE CASE OF AN ASSESSEE, THE TOTAL INCOME AS COMPUTED UNDER THE ACT IN RESPECT OF ANY PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR IS LESS THAN 30 PER CENT OF THE BOOK PROFIT, T HE TOTAL INCOME OF THE ASSESSEE SHALL BE DEEMED TO BE AN AMOUNT EQUAL TO 3 0 PER CENT OF SUCH BOOK PROFIT. THE OBJECT IS TO TAX ZERO-TAX COM PANIES. SO FAR AS INTEREST LEVIABLE UNDER SECTION 234 B IS CONCERNED, THE SECTION IS CLEAR THAT IT APPLIES TO ALL COMPANIES. THE PRE-REQUISITE CONDITION FOR APPLICABILITY OF SECTIO N 234B IS THAT THE ASSESSEE IS LIABLE TO PAY TAX UNDER SECTION 208 AND THE EXPRESSION ASSESSED TAX IS DEFINED TO MEAN THE TAX ON THE TO TAL INCOME DETERMINED UNDER SECTION 143(1) OR UNDER SECTION 14 3(3) AS REDUCED BY THE AMOUNT OF TAX DEDUCTED OR COLLECTED AT SOURC E. THUS, THERE IS NO EXCLUSION OF SECTION 115J/115JA IN THE LEVY OF I NTEREST UNDER SECTION 134B. THE EXPRESSION ASSESSED TAX IS DEFI NED TO MEAN THE TAX ASSESSED ON REGULAR ASSESSMENT WHICH MEANS THE TAX DETERMINED ON THE APPLICATION OF SECTION 115J/115JA IN THE REG ULAR ASSESSMENT. ITA NO.249 /M/ 2011 ASSESSMENT YEAR 2007-08 3 3. IN VIEW OF THE LAW LAID DOWN BY THE HONBLE SUPR EME COURT WHICH IS BINDING ON THIS TRIBUNAL, THERE IS NO MERIT IN THE PRESENT APPEAL AND THE SAME IS HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15.05.2013 . , - & *+ ! .,/ + & 0 SD/- SD/- ( R.S.SYAL ) ( SANJAY GARG ) ! , / ACCOUNTANT MEMBER , / JUDICIAL MEMBER MUMBAI ; ., DATED 15.05.2013 ... / A.K.PATEL PS , - & $(2 3 2( , - & $(2 3 2( , - & $(2 3 2( , - & $(2 3 2(/ COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT 2. $%# / THE RESPONDENT. 3. 4 ( ) / THE CIT(A)-21, MUMBAI 4. 4 / CIT X, MUMBAI 5. 260 $( , , / DR, ITAT, MUMBAI H 6. 08 9 / GUARD FILE. , - , - , - , - / BY ORDER, %2( $( //TRUE COPY// : :: :/ // /; < ; < ; < ; < ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI