ESTER INDUSTRIES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Having heard learned counsel for the parties, we frame the following substantial question of law:

(2.) The assessee is a company and for the Assessment Year 1998-99 had filed return of income declaring "nil" income along with a note claiming that minimum alternate tax provisions under Section 115JA of the Act were not applicable. The Assessing Officer by intimation dated 18th May, 1999 under Section 143(1)(a) of the Income Tax Act, 1961 computed the taxable income under minimum alternative tax, i.e., Section 115JA at Rs.8,46,300/-. He calculated income tax payable, levied interest under Sections 234A and 234B and also additional tax @ 20%. He observed that the appellant did not offer for taxation, 30% of the book profits under Section 115JA, which was applicable and, therefore, prima facie adjustment was in accordance with the provisions of Section 143(1)(a) of the Act.

(3.) The appellant filed first appeal but vide order dated 4th March, 2002 it was dismissed. This order by the first appellate authority in paragraph 4 has referred to an earlier order passed by the same authority for the Assessment Year 1997-98, in which the appellant had succeeded on the same issue/question.