M/s Pragati Power Corporation Ltd., New Delhi V. DCIT, New Delhi

ITA 5509/DEL/2010

• Counselvise Citation: 550920114 RSA 2010
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 21-12-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 07-12-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y KAKKAR
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI K.G. BANSAL ITA NOS. 5509/DEL/2010 ASSTT. YR: 2005-06 M/S PRAGATI POWER CORPN. LTD. VS. DCIT CIR. 14(1) , HIMADRI, RAJGHAT POWER HOUSE, NEW DELHI. COMPLEX, NEW DELHI-110002. PAN/GIR NO. AACCP8035F (APPELLANT) ( RESPONDENT ) APPELLANT BY : SHRI V. RAJA KUMAR AR RESPONDENT BY : MS. Y. KAKKAR SR. DR O R D E R PER R.P. TOLANI, J.M : THIS IS ASSESSEES APPEAL AGAINST CIT(A)S ORDER DA TED 27-9-2010, RELATING TO A.Y. 2006-07 . SOLE GROUND RAISED IS AS UNDER. THE LD. CIT(A) HAS ERRED IN DISMISSING THE GROUND OF APPEAL REGARDING CHARGING INTEREST U/S 234C OF THE INCOME TAX ACT, 1961 IN RESPECT OF TAX ON BOOK PROFITS U/S 115JB. 2. LEARNED DR, AT THE OUT SET, CONTENDS THAT THE IS SUE IN QUESTION IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE HONBL E SUPREME COURT DECISION DATED 7-1-2011 IN THE CASE OF JCIT VS. M/S ROLTA INDIA LTD. 2011- ITOL-02-SC-IT-LB, WHEREIN RELEVANT JUDGMENTS OF VAR IOUS HIGH COURTS HAVE BEEN CONSIDERED BY FOLLOWING OBSERVATIONS: ITA 5509/DEL/2010 PRAGATI POWER CORPN. LTD. 2 THIS VIEW OF THE KARNATAKA HIGH COURT IN KWALITY B ISCUITS LTD. WAS NOT SHARED BY THE GAUHATI HIGH COURT IN AS SAM BENGAL CARRIERS LTD. V. CIT AND MADHYA PRADESH HIGH COURT IN ITARSI OIL AND FLOURS (P) LTD. VS. CIT AS ALSO BY T HE BOMBAY HIGH COURT IN THE CASE OF CIT V. KOTAK MAHINDRA FIN ANCE LTD., WHICH DECIDED THE ISSUE IN FAVOUR OF THE DEPARTMENT AND AGAINST THE ASSESSEE. IT APPEARS THAT NONE OF THE ASSESSEES CHALLENGED THE DECISIONS OF EH GAUHATI HIGH COURT, MADHYA PRAD ESH HIGH COURTS AS WELL AS BOMBAY HIGH COURT IN THE SUPREME COURT. HOWEVER, IT MAY BE NOTED THAT THE JUDGMENT OF THE K ARNATAKA HIGH COURT IN KWALITY BISCUITS LTD. WAS CONFINED TO SECTION 115J OF THE ACT. THE ORDER OF THE SUPREME COURT DIS MISSING THE SPECIAL LEAVE PETITION IN LIMINE FILED BY THE DEPAR TMENT AGAINST KWALITY BISCUITS LTD. IS REPORTED IN (2006-ITOL-189 -SC-IT). THUS, THE JUDGMENT OF KARNATAKA HIGH COURT IN KWALI TY BISCUITS STOOD AFFIRMED. HOWEVER, THE KARNATAKA HIGH COURT HAS THEREAFTER IN THE CASE OF JINDAL THERMAL POWER COMPANY LTD. V. DY. CIT REP ORTED IN (2006-ITOL-302-HC-KAR-IT) DISTINGUISHED ITS OWN DEC ISION IN CASE OF KWALITY BISCUITS LTD. AND HELD THAT SECT ION 115JB, (WHICH IS THE ISSUE HERE), IS A SELF-CONTAINED CODE PERTAINING TO MAT, WHICH IMPOSED LIABILITY FOR PAYMENT OF ADVANCE TAX ON MAT COMPANIES AND, THEREFORE, WHERE SUCH COMPANIES DEFAULTED IN PAYMENT OF ADVANCE TAX IN RESPECT OF T AX PAYABLE UNDER SECTION 115JB, IT WAS LIABLE TO PAY INTEREST UNDER SECTION 234B AND 234C OF THE ACT. 2.1. AFTER CONSIDERING ALL THE JUDGMENTS, HONBLE S UPREME COURT HELD AS UNDER: THUS, IT CAN BE CONCLUDED THAT INTEREST UNDER SECT ION 234B AND 234C SHALL BE PAYABLE ON FAILURE TO PAY ADVANCE TAX IN R ESPECT OF TAX PAYABLE UNDER SECTION 115JA/115JB. 3. LEARNED COUNSEL FOR THE ASSESSEE IS HEARD. ITA 5509/DEL/2010 PRAGATI POWER CORPN. LTD. 3 4. THE ISSUE IN QUESTION ABOUT PAYMENT OF ADVANCE T AX AND CONSEQUENT LEVY OF INTEREST U/S 234C DUE TO NON-PAYMENT OR DEL AYED PAYMENT OF ADVANCE TAX LIABILITY IS SETTLED BY HONBLE SUPREME COURT I N THE CASE OF M/S ROLTA INDIA LTD. (SUPRA), HOLDING THAT THE ASSESSEE WAS L IABLE TO PAY INTEREST U/S 234B AND 234C. RESPECTFULLY FOLLOWING HONBLE SUPRE ME COURT JUDGMENT, WE UPHOLD THE ORDER OF CIT(A). 5. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 06-01-2012. SD/- SD/- ( K.G. BANSAL ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 06-01-2012. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR