Case Law Details

Case Name : Ginni Filaments Ltd. Vs CIT (Allahabad High Court)
Appeal Number : ITA No. 178 of 2006
Date of Judgement/Order : 21/10/2013
Related Assessment Year :
Courts : All High Courts (3707) Allahabad High Court (195)

Section 115JB, with which we are concerned, 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 tax payable under Section 115JB, it was liable to pay interest under Sections 234B and 234C of the Act.

Online GST Certification Course by TaxGuru & MSME- Click here to Join

Thus, it can be concluded that interest under Sections 234B and 234C shall be payable on failure to pay advance tax in respect of tax payable under Section 115JA/115JB. For the aforestated reasons, Circular No. 13/2001 dated 9.11.2001 issued by CBDT reported in 252 ITR(St.)50 has no application. Moreover, in any event, para 2 of that Circular itself indicates that a large number of companies liable to be taxed under MAT provisions of Section 115JB were not making advance tax payments. In the said circular, it has been clarified that Section 115JB is a self-contained code and thus, all companies were liable for payment of advance tax under Section 115JB and consequently provisions of Sections 234B and 234C imposing interest on default in payment of advance tax were also applicable.

High Court Followed the Supreme Court judgment in the case of  Jt. CIT v. Rolta India Ltd. [2011] 330 ITR 470.

Download Judgment/Order

More Under Income Tax

Posted Under

Category : Income Tax (25168)
Type : Judiciary (9994)

0 responses to “Interest Us/ 234B & 234C payable on failure to pay advance tax in respect of tax payable u/s 115JA/115JB”

  1. AMEET SHAH says:

    tHIS QUESTION WAS ASKED IN THIS mAY 2015 dIRECT TAX QUESTION PAPER.

  2. Piyush Bhartia says:

    I tried to download full article Interst us 234B & 234C but it always directed me to your home page

Leave a Reply

Your email address will not be published. Required fields are marked *