JINDAL THERMAL POWER COMPANY LIMITED FORMERLY JINDAL TRACTEBLE POWER CO Vs. DEPUTY COMMISSIONER OF INCOME TAX AND UNION OF INDIA UOI R/BY ITS

JUDGEMENT

(1.) THESE two writ petitions are disposed of by this common order as they are involved common question of law.

(2.) WRIT Petition No. 5334/2003 is filed challenging the demand made by the respondent as per annexure-C in so far as it relates to the demand pertaining to levying of interest under Section 234-B and 234-C of Income Tax Act, 1961 (for short 'the Act') aggregating to Rs. 71,12,704/- for the assessment year 2001-02 for the alleged default in payment of advance tax and Writ Petition no. 39460/2003 is filed challenging the intimation Annexure-C in so far as it demands the interest payable under Section 234-B and 234-C of the Act aggregating to Rs. 45,49,720/- for the assessment year 2002-03 for the alleged default in payment of advance tax.

(3.) IT is the contention of the petitioner which is common in both the petitions that a Division bench of this Court has held that there is no obligation to pay advance tax in excess of assessment corresponding to provisions of Section 115j which was in force earlier and consequently there should be no levy of interest under Section 234-B and 234-C of the Act and if the first respondent seeks to rely as is seemingly done in view of the amendment of Section 115jb effected by Finance Act, 2002 with retrospective effect from 1. 4. 2001 enabling him to levy such interest. The said amendment in so far as it relates to retrospective operation for levy of interest under Section 234-B and 234-C of the Act with effect from 1. 4. 2001 is unconstitutional being contrary to Article 265 and 300a of the Constitution of India and being expropriatary.