ESTER INDUSTRIES LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AFTER hearing learned counsel for the parties, we are of the view that even though several questions have been framed by the appellant, only two substantial questions of law would arise for our consideration. These are as follows :

(2.) INSOFAR as question No. (ii) is concerned, it is now common ground that in view of the decision of the Karnataka High Court in Kwality Biscuits Ltd. vs. CIT (2000) 159 CTR (Kar) 316 : (2000) 243 ITR 519 (Kar) interest under ss. 234B and 234C of the IT Act in the case of assessment of a company on the basis of book profits under s. 115J of the Act cannot be levied. A SLP was filed by the Revenue against that decision. The SLP having been dismissed by the Supreme Court in CIT vs. Kwality Biscuits Ltd. (2006) 205 CTR (SC) 122 : (2006) 284 ITR 434 (SC), the question with regard to levy of interest under ss. 234B and 234C must be answered in the negative and in favour of the assessee.

(3.) WE make it clear that though the question of levy of MAT is a part of question No. (i) above, this order is not to be construed as having rendered any decision in respect of question No. (i).