BINANI INDUSTRIES LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this matter an interesting question has arisen for which this appeal has been admitted on the ground as follows :

(2.) IN this case we are concerned with s. 115JA. It provides, amongst others, for computation of fictional income for the purpose of levying taxes. We are, therefore, appropriately quoting s. 115JA which is part of Chapter XII -B.

(3.) IT was the contention of the assessee that the payment of advance tax is not attractable in cases of the fictional income as mentioned above. Therefore, logically payment of interest under s. 234B and also interest on deferment of payment of interest under s. 234C do not apply. This contention of the appellant did not find favour of the AO who held that the aforesaid fictional income is attracted for payment of advance tax as provided under ss. 207 and 208 of the IT Act, 1961. Secondly, interest amount on both the counts is to be paid. So, the said amount of interest was levied.