INCOME TAX ACT, 1961

--Interest under section 234B and 234C--ChaergeabilityAssessment completed under section 115JA--Assessee filed its return for the relevant assessment year. AO, while making the assessment under section 143(3) charged interest under sections 234B and 234C and determined the income under section 115JA. Assessee challenged the order of AO on the ground that since the assessment was made under section 115JA, the computation of income would be made only at the end of the year and, therefore, the question of deducting payment of tax in advance would not arise and therefore, following, the decision in kwality Biscuits Ltd. v. CIT (2000) 243 ITR 519 (P&H) interest under sections 234B and 234C was not applicable in its case. Held: When the assessment was made under section 115A, in view of the provisions of section 115JA(4), the provisions of sections 234B and 234C would be applicable and the decision in Kwality Biscuits Ltd. (supra) confined to the judgment where the order of assessment was made under section 115J. Therefore, interest under sections 234B and 234C were rightly charged. [Para 6]

Income Tax Act, 1961 Section 234B

Income Tax Act, 1961 Section 234C

IN THE KARNATAKA HIGH COURT

V.G. SABHAHIT & S.N. SATYANARAYANA, JJ.

Bullion Invts & Fin. Services (P) Ltd. v. DCIT

ITA No. 584 of 2006

A.Y. 1999-2000

12 December, 2011

Appellant by : M.V. Javal. ADV.,

Respondent by : Sriyuths Indrakumar, Sr. Counsel & Esanmathi Indra Kumar, Advs.,