ABHISHEK INDUSTRIES LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) 2007, passed by the Income -tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh (for short 'the Tribunal') in ITA No. 392/Chd/2006 for the asst. yr. 1998 -99 :

(2.) After hearing learned counsel for the parties, we find that first substantial question of law, as referred to above, does arise for consideration by this Court in the present appeal. With the consent of learned counsel for the parties, arguments were heard at the motion stage for final disposal of the appeal on the first substantial question of law.

(3.) Briefly, the facts are that assessment of the appellant -assessee was completed under s. 143(3) of the IT Act, 1961 was determined at Rs. 89,15,417 and tax was charged thereon. However, no interest under s. 234B of the Act was charged. Notice under s. 154 of the Act was issued for charging interest under ss. 234B and 234C of the Act for short. The contention raised by the assessee is that interest under these sections can be levied only in case where the assessee is required to pay any advance tax and as the tax under s. 115JA of the Act is levied on the book profits which are calculated on the basis of audited P&L a/c, which are available only after the close of the year when the accounts are prepared and finally approved, was rejected keeping in view the judgment of Gauhati High Court in Assam Bengal Carriers Ltd. vs. CIT (2000) 162 CTR (Gau) 170 : (1999) 239 ITR 862 (Gau) holding that interest under ss. 234B and 234C of the Act was leviable for short payment/non -payment of advance tax. The judgment of Gauhati High Court is dt. 5. In appeal before the CIT(A) -I, Ludhiana, the assessee succeeded and the rectification order was set aside. 6. However, in further appeal by the Revenue before the Tribunal, the stand of the Revenue was accepted and the order passed by the AO under s. 154 of the Act was restored.