Income Tax Act, 1961

--Interest under sections 234B and 234C--Chargeability Computation of income under section 115JA--According to Tribunal, interest under sections 234B and 234C could not be levied when computation of income had been made under section 115JA. Held : Not rightly so, as it is clear from reading of the sections 115JA and 115JB that the question whether a company which is liable to pay 'tax under either provision does not assume importance 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)]. The prerequisite condition for applicability of section 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 section 143(3) as reduced by the amount of tax deducted or collected at source. Thus, there is no exclusion of sections 115J/115JA in the levy of interest under section 234B.

Income Tax Act, 1961, Section 234B

Income Tax Act, 1961, Sections 115A & 234C

In the Karnataka High Court

N. Kumar & Ravi Malimath, J.J.