DCIT, New Delhi V. M/s. Asahi India Glass Ltd, New Delhi

ITA 3364/DEL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52836 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-09-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 09-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS ANUSHA KHURANA
• Assessee Lawyers: O P SAPRA
• Keywords: Rectification of order
• Section: 143(3); 234B; 115JB; 154; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER ITA NOS.3364 & 3365/DEL/2010 ASSESSMENT YEARS : 2006-07 & 07-08 DCIT, CIRCLE 2 (1), ROOM NO.398D, CR BLDG., NEW DELHI. VS. ASAHI INDIA GLASS LTD., 12, BASANT LOK, VASANT VIHAR, NEW DELHI. PAN : AADCA7706R (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI O.P. SAPRA, ADVOCATE REVENUE BY : MRS. ANUSHA KHURANA, SR.DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER BOTH THESE APPEALS ARE FILED BY THE REVENUE. THEY A RE DIRECTED AGAINST THE CONSOLIDATED ORDER PASSED BY THE CIT (A) DA TED 12 TH APRIL, 2010 IN RESPECT OF ASSESSMENT YEARS 2006-07 AND 2007-08. THE FACTS RELATING TO EACH YEAR ARE AS UNDER:- ASSESSMENT YEAR 2006-07 2. THE ASSESSEE HAS BEEN HELD LIABLE FOR TAXATION U/S 115 JB AND BOOK PROFIT HAS BEEN COMPUTED AT ` 6,48,01,869/- VID E INTIMATION FRAMED U/S 143 (1) OF THE ACT WHICH IS DATED 3 RD JANUARY, 2008. COPY OF THIS INTIMATION IS FILED AT PAGE 2 OF THE PAPER BOOK. IN THE SAID INTIMATION, THE ASSESSEE WAS CHARGED FOR AN AMOUNT OF ` 22,23,497/- BEING INTEREST PAYABLE U/S 234C OF THE ACT. THE ASSESSEE BEING OF THE VIEW THAT INTEREST U/S 234 COULD NOT BE LEVIED HAD F ILED AN APPLICATION OF RECTIFICATION BEFORE THE ASSESSING OFFICER WHICH WAS FILED ON 4 TH ITA NOS.3364 & 3365/DEL/2010 2 SEPTEMBER, 2009 (COPY IS FILED AT PAGE 3 OF THE PAP ER BOOK). IN THE SAID APPLICATION, IT WAS CLAIMED THAT THE ITAT IN ASSESSE ES OWN CASE FOR ASSESSMENT YEAR 2004-05, RELYING UPON THE DECISION O F HONBLE SUPREME COURT IN THE CASE OF KWALITY BISCUITS LTD. 284 ITR 434 (SC), HAS HELD THAT INTEREST IS NOT CHARGEABLE U/S 234C ON TH E INCOME COMPUTED U/S 115JB, THEREFORE, NO INTEREST AT ALL SHOU LD BE LEVIED. IN RESPONSE THEREOF THE ASSESSING OFFICER PASSED IMPUGNED ORDE R U/S 154 VIDE WHICH INTEREST PAYABLE U/S 234C WAS REDUCED FROM ` 22,23,497/- TO ` 16,07,373/-. THE ASSESSEE BEING AGGRIEVED FILED A N APPEAL BEFORE THE CIT (A) CHALLENGING THE LEVY OF INTEREST ON THE GROUND THAT THE SAME CANNOT BE LEVIED FOLLOWING THE AFOREMENTIONED D ECISION OF ITAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2004-05. ALTERNATIVE LY, IT WAS CLAIMED THAT THE ASSESSING OFFICER HAD NO RIGHT TO M AKE ADJUSTMENT IN THE ORDER PASSED U/S 143 (1)(A) AND CHARG E INTEREST U/S 234C. FOR THIS PURPOSE, THE RELIANCE WAS PLACED ON TH E DECISION OF BOMBAY HIGH COURT IN THE CASE OF CIT VS. HINDUSTAN HOT ELS LTD. 226 CTR 454 (BOM). LEARNED CIT (A) AFTER CONSIDERING TH ESE SUBMISSIONS HAS HELD THAT SUCH INTEREST COULD NOT BE CHARGED IN VI EW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF KWALITY BISCU ITS (SUPRA) AND ALSO IN VIEW OF THE DECISION OF ITAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2004-05. IN THIS MANNER, LEVY OF INTERE ST U/S 234C HAS BEEN DELETED BY THE CIT (A). THE REVENUE IS AGGR IEVED AND HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE LEARNED CIT (A) HAS ERRED IN LAW AND ON FAC TS IN DELETING INTEREST OF RS.16,07,373/- CHARGED U/S 234C O F THE ACT. LEARNED CIT (A) HAS FAILED TO APPRECIATE THE FACTS OF TH E CASE AND PROVISIONS OF SUB-SECTION 5 OF SECTION 115JB OF THE IT ACT WHICH CLEARLY PROVIDES THAT IN A CASE WHERE TAX IS PAYABLE U NDER SPECIAL PROVISIONS OF THE ACT ALL THE PROVISIONS OF THE ACT SHALL APPLY TO EVERY ASSESSEE BEING A COMPANY MENTIONED IN SECTION 115JB OF THE ACT. ITA NOS.3364 & 3365/DEL/2010 3 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. ASSESSMENT YEAR 2007-08 3. THE RETURN OF INCOME WAS PROCESSED BY AN INTIMATION PASSED U/S 143(1) OF THE AT WHICH IS DATED 24 TH FEBRUARY, 2009 COPY OF WHICH IS PLACED AT PAGE 2 OF THE PAPER BOOK IN WHICH THE INT EREST U/S 234A WAS CHARGED AT ` 50,17,520/-. AGGRIEVED WITH THE LEVY OF INTEREST U/S 234A THE ASSESSEE FILED AN APPLICATION OF RECTIFICATION BEFO RE THE ASSESSING OFFICER ON 5 TH NOVEMBER, 2009. COPY OF THE SAID APPLICATION IS FIL ED AT PAGE 3 OF THE PAPER BOOK. ACCORDINGLY, THE ASSESSING O FFICER PASSED ORDER OF RECTIFICATION DATED 12 TH NOVEMBER, 2009 COPY OF WHICH IS PLACED AT PAGE 4 OF THE PAPER BOOK. THE ASSESSING OFFI CER HAS DELETED THE INTEREST LEVIED U/S 234A IN PURSUANCE OF APPLICATI ON FILED BY THE ASSESSEE. HOWEVER, HE LEVIED INTEREST U/S 234C AMOUNTING TO ` 3,12,360/-. AGGRIEVED BY THE LEVY OF INTEREST U/S 23 4C, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT (A). SIMILAR GROUND S WERE RAISED BY THE ASSESSEE BEFORE THE CIT (A) AS WERE RAISED FOR ASSESSMENT YEA R 2006- 07 AND WHICH HAVE BEEN DISCUSSED IN EARLIER PART OF TH IS ORDER AND, FOLLOWING THE AFOREMENTIONED DECISIONS, LEARNED CIT ( A) HAS DELETED THE INTEREST. THE REVENUE IS AGGRIEVED WITH THIS DELE TION AND, HENCE, HAS FILED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE LEARNED CIT (A) HAS ERRED IN LAW AND ON FA CTS IN DELETING INTEREST OF RS.3,12,360/- CHARGED U/S 234C OF THE ACT. LEARNED CIT (A) HAS FAILED TO APPRECIATE THE FACTS OF TH E CASE AND PROVISIONS OF SUB-SECTION 5 OF SECTION 115JB OF THE IT ACT WHICH CLEARLY PROVIDES THAT IN A CASE WHERE TAX IS PAYABLE U NDER SPECIAL PROVISIONS OF THE ACT ALL THE PROVISIONS OF THE ACT SHALL APPLY TO EVERY ASSESSEE BEING A COMPANY MENTIONED IN SECTION 115JB OF THE ACT. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIGHT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. ITA NOS.3364 & 3365/DEL/2010 4 4. AT THE OUTSET, IT WAS SUBMITTED BY THE LEARNED DR T HAT THE ISSUE REGARDING LEVY OF INTEREST U/S 234B AND 234C ON THE B OOK PROFIT COMPUTED U/S 115JB HAS NOW BEEN SET AT REST BY HONBLE SUPREME COURT BY THE DECISION IN THE CASE OF JCIT VS. ROLTA IN DIA LTD. 330 ITR 470 (SC) WHEREIN THEIR LORDSHIPS HAVE HELD THAT 115JB IS SELF-CONTAINED CODE AND, THUS, ALL COMPANIES WERE LIABLE FOR PAYMENT OF ADVANCE TAX U/S 115JB AND CONSEQUENTLY THE PROVISIONS OF SECTION 23 4B AND 234C FOR MAKING DEFAULT IN PAYMENT OF ADVANCE TAX IS ALSO APPLICABLE. WHILE HOLDING SO, THEIR LORDSHIPS HAVE ALSO CONSIDERED EARLIER DECISION IN THE CASE OF KWALITY BISCUITS LTD. (SUPRA). SHE SUBMITTED TH AT THIS DECISION OF HONBLE SUPREME COURT IS RENDERED BY HONBLE THRE E JUDGES, THEREFORE, THE ASSESSING OFFICER WAS RIGHT IN LEVYING TH E INTEREST AND THE LEVY OF INTEREST HAS WRONGLY BEEN DELETED BY THE CIT (A). SHE SUBMITTED THAT THE DECISION OF THE TRIBUNAL IN THE CA SE OF THE ASSESSEE FOR ASSESSMENT YEAR 2004-05 IS NO MORE A GOOD LAW IN VIE W OF THE AFOREMENTIONED DECISION OF HONBLE SUPREME COURT. SH E FURTHER PLEADED THAT IT CANNOT BE THE CASE OF THE ASSESSEE THAT SUCH INTEREST CANNOT BE LEVIED U/S 154 AS IT WAS THE ASSESSEE ONLY WHO H AS FILED APPLICATION FOR BOTH THE YEARS TO GET RECTIFICATION OF SUCH INTEREST AND, THEREFORE, THE ASSESSEE CANNOT BREATH HOT AND COLD AT T HE SAME TIME TO CONTEND THAT SUCH INTEREST CANNOT BE LEVIED UNDER THE PROVISIONS OF SECTION 154 OF THE ACT. 5. ON THE OTHER HAND, RELYING UPON THE DECISION OF T HE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2004-05 AND ALSO THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF KWAL ITY BISCUITS LTD. VS. CIT (SUPRA), IT IS THE CASE OF THE LEARNED AR THAT LEARNED CIT (A) HAS RIGHTLY DELETED THE INTEREST LEVIED U/S 234C. HE ALSO SUBMITTED THAT SUCH LEVY IS NOT POSSIBLE BY WAY OF RECTIFICATION ORDER PASSED BY THE ASSESSING OFFICER AS PER AFOREMENTIONED DECISION OF HONB LE BOMBAY HIGH COURT IN THE CASE OF CIT VS. HINDUSTAN HOTELS LTD. (SUPRA). ITA NOS.3364 & 3365/DEL/2010 5 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED BEFORE US. SO AS IT RELATES TO LE VY OF INTEREST U/S 234B AND 234C, IT MAY BE MENTIONED THAT THIS ISSUE HAS NOW BEEN SET AT REST BY THE HONBLE SUPREME COURT IN THE AFOREMEN TIONED DECISION OF JCIT VS. ROLTA INDIA LTD. (SUPRA) WHICH HAS BEEN RE NDERED BY THE BENCH OF THREE HONBLE JUDGES. THE RELEVANT OBSERVATI ONS OF THEIR LORDSHIPS FROM THE SAID DECISION ARE REPRODUCED BELOW:- 7. IN OUR VIEW, SECTION 115J/115JA ARE SPECIAL PROV ISIONS. SECTION 207 ENVISAGES THAT TAX SHALL BE PAYABLE IN ADVA NCE DURING ANY FINANCIAL YEAR ON CURRENT INCOME IN ACCOR DANCE WITH THE SCHEME PROVIDED IN SECTIONS 208 TO 219(BOTH INCLUSI VE) IN RESPECT OF THE TOTAL INCOME OF THE ASSESSEE THAT WOULD BE CHARGEABLE TO TAX FOR THE ASSESSMENT YEAR IMMEDIATELY FO LLOWING THAT FINANCIAL YEAR. SECTION 215(5) OF THE ACT DEFINED W HAT IS 'ASSESSED TAX', I.E., TAX DETERMINED ON THE BASIS OF RE GULAR ASSESSMENT SO FAR AS SUCH TAX RELATES TO INCOME SUBJECT TO ADVANCE TAX. THE EVALUATION OF THE CURRENT INCOME AND TH E DETERMINATION OF THE ASSESSED INCOME HAD TO BE MADE IN TERMS OF THE STATUTORY SCHEME COMPRISING SECTION115J/115JA OF THE ACT. HENCE, LEVYING OF INTEREST WAS INESCAPABLE. THE A SSESSEE WAS BOUND TO PAY ADVANCE TAX UNDER THE SAID SCHEME OF THE 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 YE AR RELEVANT TO THE ASSESSMENT YEAR IS LESS THAN 30% OF THE B OOK PROFIT, THE TOTAL INCOME OF THE ASSESSEE SHALL BE DEEMED TO BE AN AMOUNT EQUAL TO 30% OF SUCH BOOK PROFIT. THE OBJECT IS TO TAX ZERO-TAX COMPANIES. 8. SECTION 115J WAS INSERTED BY FINANCE ACT, 1987 W.E.F.1.4.1988. THIS SECTION WAS IN FORCE FROM 1.4.1 988 TO31.3.1991. AFTER 1.4.1991, SECTION 115JA WAS INSERTED BY FINANCE ACT OF 1996 W.E.F. 1.4.1997. AFTER INSERTION O F SECTION115JA, SECTION 115JB WAS INSERTED BY FINANCE AC T, 2000W.E.F. 1.4.2001. IT IS CLEAR FROM READING SECTION S 115JA AND115JB THAT THE QUESTION WHETHER A COMPANY WHICH IS LI ABLE TO PAY TAX UNDER EITHER PROVISION DOES NOT ASSUME IMPORTAN CE BECAUSE SPECIFIC PROVISION(S) IS MADE IN THE SECTION SAYING THAT ALL OTHER PROVISIONS OF THE ACT SHALL APPLY TO THE MAT COMPANY(SECTION 115JA(4) AND SECTION 115JB(5)). SIMIL ARLY, AMENDMENTS HAVE BEEN MADE IN THE RELEVANT FINANCE ACTS PROVIDING FOR PAYMENT OF ADVANCE TAX UNDER SECTIONS 11 5JAAND 115JB. SO FAR AS INTEREST LEVIABLE UNDER SECTION 234B IS CONCERNED, THE SECTION IS CLEAR THAT IT APPLIES TO ALL CO MPANIES. ITA NOS.3364 & 3365/DEL/2010 6 THE PRE-REQUISITE CONDITION FOR APPLICABILITY OF SECTIO N 234B IS THAT ASSESSEE IS LIABLE TO PAY TAX UNDER SECTION 208 AND THE EXPRESSION 'ASSESSED TAX' IS DEFINED TO MEAN THE TAX ON THE TOTAL INCOME DETERMINED UNDER SECTION 143(1) OR UNDER S ECTION 143(3) AS REDUCED BY THE AMOUNT OF TAX DEDUCTED OR COLL ECTED AT SOURCE. THUS, THERE IS NO EXCLUSION OF SECTION115J/11 5JA IN THE LEVY OF INTEREST UNDER SECTION 234B. THE EXPRESSION 'A SSESSED TAX' IS DEFINED TO MEAN THE TAX ASSESSED ON REGULAR ASS ESSMENT WHICH MEANS THE TAX DETERMINED ON THE APPLICATION OF SEC TION 115J/115JA IN THE REGULAR ASSESSMENT. 9. THE QUESTION WHICH REMAINS TO BE CONSIDERED IS WHE THER THE ASSESSEE, WHICH IS A MAT COMPANY, WAS NOT IN A POSITI ON TO ESTIMATE ITS PROFITS OF THE CURRENT YEAR PRIOR TO THE END OF THE FINANCIAL YEAR ON 31ST MARCH. IN THIS CONNECTION THE AS SESSEE PLACED RELIANCE ON THE JUDGMENT OF THE KARNATAKA HIGH C OURT IN THE CASE OF KWALITY BISCUITS LTD. V. CIT REPORTED IN (20 00) 243 ITR 519 AND, ACCORDING TO THE KARNATAKA HIGH COURT, THE PRO FIT AS COMPUTED UNDER THE INCOME TAX ACT, 1961HAD TO BE PREPAR ED AND THEREAFTER THE BOOK PROFIT AS CONTEMPLATED UNDER SECTI ON 115J OF THE ACT HAD TO BE DETERMINED AND THEN, THE LIABIL ITY OF THE ASSESSEE TO PAY TAX UNDER SECTION 115J OF THE ACT AR OSE, ONLY IF THE TOTAL INCOME AS COMPUTED UNDER THE PROVISIONS OF THE ACT WAS LESS THAN 30%OF THE BOOK PROFIT. ACCORDING TO THE KA RNATAKA HIGH COURT, THIS ENTIRE EXERCISE OF COMPUTING INCOME OR THE BOOK PROFITS OF THE COMPANY COULD BE DONE ONLY AT THE END OF THE FINANCIAL YEAR AND HENCE THE PROVISIONS OF SECTIONS 2 07, 208, 209 AND 210(PREDECESSORS OF SECTIONS 234B AND 234C) WERE NOT APPLICABLE UNTIL AND UNLESS THE ACCOUNTS STOOD AUDITED A ND THE BALANCE SHEET STOOD PREPARED, BECAUSE TILL THEN EVEN THE ASSESSEE MAY NOT KNOW WHETHER THE PROVISIONS OF SECTION 115J WOULD BE APPLIED OR NOT. THE COURT, THEREFORE, HELD TH AT THE LIABILITY WOULD ARISE ONLY AFTER THE PROFIT IS DETERMINE D IN ACCORDANCE WITH THE PROVISIONS OF THE COMPANIES ACT, 19 56 AND, THEREFORE, INTEREST UNDER SECTIONS 234B AND 234C IS NOT LEVIABLE IN CASES WHERE SECTION 115J APPLIED. THIS VIEW OF THE KARNATAKA HIGH COURT IN KWALITY BISCUITS LTD. WAS NOT SHARED BY THE GAUHATI HIGH COURT IN ASSAM BENGAL CARRIERS LTD. V. CIT REPOR TED IN(1999) 239 ITR 862 AND MADHYA PRADESH HIGH COURT I N ITARSI OIL AND FLOURS (P.) LIMITED V. CIT REPORTED IN (2001) 250 ITR686 AS ALSO BY THE BOMBAY HIGH COURT IN THE CASE OF CIT V. KOTAK MAHINDRA FINANCE LTD. REPORTED IN (2003) 130 TAXMAN73 0 WHICH DECIDED THE ISSUE IN FAVOUR OF THE DEPARTMENT AND AGAIN ST THE ASSESSEE. IT APPEARS THAT NONE OF THE ASSESSES CHALLENG ED THE DECISIONS OF THE GAUHATI HIGH COURT, MADHYA PRADESH HI GH COURT AS WELL AS BOMBAY HIGH COURT IN THE SUPREME COURT. HOW EVER, IT MAY BE NOTED THAT THE JUDGMENT OF THE KARNATAKA HIGH COURT IN KWALITY BISCUITS LTD. WAS CONFINED TO SECTION 115J OF THE ACT. THE ORDER OF THE SUPREME COURT DISMISSING THE SPECIAL LEAV E PETITION IN LIMINE FILED BY THE DEPARTMENT AGAINST KWALITY BISCUITS LTD. IS REPORTED IN(2006) 284 ITR 434. THUS, THE ITA NOS.3364 & 3365/DEL/2010 7 JUDGMENT OF KARNATAKA HIGH COURT IN KWALITY BISCUITS STOO D AFFIRMED. HOWEVER, THE KARNATAKA HIGH COURT HAS THEREAF TER IN THE CASE OF JINDAL THERMAL POWER COMPANY LTD. V. DY. CIT REPORTED IN (2006)154 TAXMAN 547 DISTINGUISHED ITS OWN DECISION IN CASE OF KWALITY BISCUITS LTD. (SUPRA) AND HELD THAT SECTION 115JB,WITH WHICH WE ARE CONCERNED, IS A SELF- CONTAINED CODE PERTAINING TO MAT, WHICH IMPOSED LIABILITY FOR PA YMENT OF ADVANCE TAX ON MAT COMPANIES AND, THEREFORE, WHERE SU CH COMPANIES DEFAULTED IN PAYMENT OF ADVANCE TAX IN RESPE CT OF TAX PAYABLE UNDER SECTION 115JB, IT WAS LIABLE TO PAY I NTEREST UNDER SECTIONS 234B AND 234C OF THE ACT. THUS, IT CAN B E CONCLUDED THAT INTEREST UNDER SECTIONS 234B AND 234C SHA LL BE PAYABLE ON FAILURE TO PAY ADVANCE TAX IN RESPECT OF TAX PAYABLE UNDER SECTION 115JA/115JB. FOR THE FORETASTED REASONS, CIRCULAR NO. 13/2001 DATED 9.11.2001 ISSUED BY CBDT REPORTED I N 252 ITR(ST.)50 HAS NO APPLICATION. MOREOVER, IN ANY EVENT, PARA 2 OF THAT CIRCULAR ITSELF INDICATES THAT A LARGE NUMBER OF CO MPANIES LIABLE TO BE TAXED UNDER MAT PROVISIONS OF SECTION 115 JB WERE NOT MAKING ADVANCE TAX PAYMENTS. IN THE SAID CIRCULAR, IT HAS BEEN CLARIFIED THAT SECTION 115JB IS A SELF-CONTAINED C ODE AND THUS, ALL COMPANIES WERE LIABLE FOR PAYMENT OF ADVANC E TAX UNDER SECTION 115JB AND CONSEQUENTLY PROVISIONS OF SE CTIONS 234 BAND 234C IMPOSING INTEREST ON DEFAULT IN PAYMENT O F ADVANCE TAX WERE ALSO APPLICABLE. 10. FOR THE A FORE STATED REASONS CIT SUCCEEDS IN THE C IVIL APPEAL ARISING OUT OF S.L.P. (C) NO. 25746 OF 2009 (JT. CIT V. ROLTA INDIA LTD.) AS ALSO IN THE CIVIL APPEAL ARISING OUT OF S.L.P .(C) NO. 18367 OF 2010 (CIT-3 V. EXPORT CREDIT GUARANTEE CORPORATION O F INDIA LTD.). CONSEQUENTLY, CIVIL APPEAL NO. 459OF 2006 (NAH AR EXPORTS V. CIT) AND CIVIL APPEAL NO. 7429 OF2008 (LAKSHMI P RECISION SCREWS LTD. V. CIT) STAND DISMISSED WITH NO ORDER AS TO COSTS. 7. THEREFORE, IT HAS TO BE HELD THAT EVEN IN A CASE W HERE THE ASSESSMENT HAS BEEN FRAMED U/S 115JB, LEVY OF INTEREST U/S 234B AND 234C IS PROPER. NOW, COMING TO THE SECOND CONTENTION OF THE ASSESSEE THAT SUCH DEMAND CANNOT BE RAISED BY WAY OF RECTIFICA TION U/S 154, WE SEE FALLACY IN SUCH CLAIM OF THE ASSESSEE AS IT WAS THE ASSESSE E WHO HAS FILED APPLICATION FOR RECTIFICATION FOR BOTH THE YEARS ON THE BASIS OF WHICH IT HAS GOT SUBSTANTIAL RELIEF ON THE LEVY OF INT EREST. IF THE CONTENTION OF THE ASSESSEE IS TO BE ACCEPTED THAT SUCH IN TEREST CANNOT BE RECTIFIED BY WAY OF AN ORDER U/S 154, THEN, THE A SSESSEE COULD NOT HAVE THE BENEFIT OF REDUCTION OF INTEREST WHICH WAS L EVIED UPON IT U/S 234A TO THE EXTENT OF ` 50,17,520/- FOR ASSESSMENT YEAR 2007-08 AND IT ITA NOS.3364 & 3365/DEL/2010 8 COULD NOT HAVE THE REDUCTION OF INTEREST WHICH WAS EA RLIER LEVIED U/S 234C OF ` 22,23,497/- AND WAS REDUCED TO ` 16,07,373 /-. THE LEVY OF INTEREST U/S 234B AND 234C HAS BEEN HELD TO BE MANDAT ORY AND AUTOMATIC. IT DEPEND UPON THE PAYMENT OF ADVANCE T AX AND TDS BY A PARTICULAR ASSESSEE AND IT IS A MATTER OF CALCULATION ON LY. THEREFORE, WE FIND NO FORCE IN SUCH CONTENTION OF THE LEARNED AR. 8. THE ORDER OF CIT (A) BEING CONTRARY TO THE DECISI ON RENDERED BY HONBLE SUPREME COURT IN THE CASE OF JCIT VS. ROLTA I NDIA LTD. (SUPRA) HAS TO BE REVERSED FOR BOTH THE YEARS AND, THEREFORE, THE RELIEF GRANTED BY LEARNED CIT (A) IS REVERSED AND THE APPEALS FILED B Y THE REVENUE ARE ALLOWED IN THE MANNER AFORESAID. 9. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVEN UE ARE ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 14.10.20 11. SD/- SD/- [K.G. BANSAL] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 14.10.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES