LAWS(APH)-2014-12-113

FENOPLAST LIMITED Vs. DEPUTY COMMISSIONER OF INCOME TAX

Decided On December 10, 2014
FENOPLAST LIMITED Appellant
V/S
DEPUTY COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) THE appellant is a Company and it used to file returns under the Income Tax Act, 1961 (for short the Act) year after year. For the assessment year, 2001 -2002, it filed returns showing Nil income. Being a Company, it is governed by the provisions of Section 115JB of the Act, in case the income determined in accordance with the provisions of the Act for assessment year is below 18.5% of the book profit reflected in the books of account maintained under the Companies Act, the assessable income of the appellant shall be 18.5% of the book profits.

(2.) BEING under the impression that the liability to pay tax would arise only at the end of the financial year on finalisation of the books of account, the advance tax need not be paid; the appellant did not make such payment for the concerned assessment year. On scrutinising the returns, the Assessing Officer gave an intimation under Section 143(1) of the Act. While all other facts and figures were accepted, it was mentioned that the appellant is liable to pay interest under Section 234B of the Act, being a sum of Rs.2,52,107/ - and under Section 234C of the Act, at Rs.70,076/ -. The appellant filed an application under Section 154 of the Act for rectification of those figures. It was pleaded that an intimation under Section143(1) of the Act can be only on acceptance of facts and figures furnished in the returns and there was no basis for making demand of the interest under those two provisions. The application was rejected. Thereupon, the appellant approached the Commissioner of Income Tax (Appeals), by way of appeal, and on dismissal of the same, it filed I.T.A.No.121/Hyd/2004, before the Hyderabad Bench B of the Income Appellate Tribunal (for short the Tribunal). The appeal was dismissed through order, dated 26.04.2004. Hence, this appeal.

(3.) IN the memorandum of grounds, only the following question was framed: