JACOB EXPORT HOUSE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against order dated 31st July, 2008 of the Tribunal, Chandigarh in ITA No. 318/Chd/2008 for the assessment year 2001-02, proposing following substantial questions of law:

(2.) Facts necessary for adjudication of this appeal may be noticed. The assessee did not pay advance tax as per provisions of Section 208 of the Act on the ground that its income was not liable to be taxed in view of provisions under Sections 80HHC and 80-IB of the Act. Claim of the assessee was not accepted for deduction under the said provisions by the assessing officer. Demand of interest was also raised under Section 234B of the Act. On appeal, the Commissioner (Appeals) upheld the plea of the assessee that since advance tax was not paid under a bona fide belief, interest under Section 234B of the Act was not attracted. On appeal by the revenue to the Tribunal, the view of the Commissioner (Appeals) was reversed. It was held that bona fide belief of the assessee to estimate taxability of income could not be valid ground to avoid liability to pay interest under Section 234B of the Act on advance tax ultimately found due.

(3.) We have heard learned Counsel for the parties and perused the record.