COMMISSIONER OF INCOME TAX Vs. XPRO INDIA LTD.

JUDGEMENT

(1.) Leave granted.

(2.) The following substantial question of law arose for determination under Section 260A of the Income Tax Act, 1961. The said question reads as follows:

(3.) In our view, the High Court erred in coming to the conclusion that no substantial question of law arose and consequently the Department s appeal was dismissed. We are of the view that in the present case question of interpretation of Section 234B in the context of short payment of interest on advance tax arises for determination before the High Court which warrants interpretation of Section 115JAA of the 1961 Act read with Sections 234B and 234C of the 1961 Act. The shortage in payment according to the respondent was on account of applicability of Section 115JAA. The High Court in that connection was required to decide the nature of the levy under Section 234B whether the levy is penal or mandatory. It has also not considered the judgment of the Bombay High Court in the matter of CIT v. Kotak Mahindra Finance Ltd.,.