INTERST TO BE LEVIED U/S 234B &234C IN CASE OF COMPUTATION

Querist : Anonymous (Querist) 12 May 2010 This query is : Resolved
WHETHER INTEREST U/S 234B &234C IC LEVIABLE IN CASE OF COMPUTATION OF INCOME UNDER PROVISIONS OF SECTION 115JA & 115JB

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soumitra basu (Expert) 12 May 2010
There is divergent view in opinion. I opine that interest should be levied.

A V Vishal (Expert) 12 May 2010
All companies are liable for payment of advance tax having regard to the provisions
contained in new section 115JB. Consequently, the provisions of sections 234B and
234C for interest on defaults in payment of advance tax and deferment of advance tax
would also be applicable where facts of the case warrant

Vineet (Expert) 13 May 2010
In view of sub-section 115JA(4) and 115JB(5) it is now pretty clear that Advance Tax as per chapter XII C is payable by Companies covered under MAT and therefore default in payment of advance tax attracts levy of interest u/s 234B and 234C.

Earlier there were conflicting judgements in relation to MAT levied u/s 115J as there was no identical provision in that section. (Refer Kwality Biscuits case Karnataka High Court). However after new MAT provisions u/s 115JA and 115JB the issue stands settled by various High Court Decisions which are uniform in this matter including Karnataka High Court decision in case of Jindal Thermal Power Co Ltd 286 ITR 182.

Saurabh Bansal (Expert) 15 May 2010
Yes..certainly the interst u/s 234 will be levied since sec 115JB do not overrule the assessment, collection of tax etc. 's provisions..

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