COMMISSIONER OF INCOME TAX Vs. UNITED VANASPATI LTD

JUDGEMENT

(1.) THIS appeal has been admitted on the following question of law: Whether on the facts and in the circumstances of the case, the Tribunal, Chandigarh Bench, Chandigarh, was right in holding that no interest under Sections 234B and 234C of the IT Act, 1961 is chargeable where the income is determined by invoking the provisions of Section 115J of the IT Act, 1961?

(2.) THE admitted facts are that for the asst. yr. 1990 91 the assessee United Vanaspati Ltd., a company incorporated under the Companies Act, 1956, filed a loss return. Various proceedings took place in between but finally, the AO by invoking the provisions of Section 115J of the IT Act, 1961 (hereinafter referred to 'the Act') determined the total income at Rs. 12,40,000 being 30 per cent of the book profits of the assessee.

(3.) A bear reading of this section shows that for the assessment years commencing from 1st April, 1988 till 31st March, 1991, the total chargeable income of a company shall be deemed to be not less than 30 per cent of its book profits.