Interest under sec 234B and 234C is payable for failure to advance tax in respect of tax payable under sec 115JA/115JB

Last updated: 24 April 2012

Court :
Income Tax Appeallate Tribunal

Brief :
At the outset, it was pointed out by the learned AR that only one issue is raised in the present appeal which is regarding disallowance made u/s 14A read with Rule 8D of IT Rules, 1962. The Assessing Officer has made disallowance u/s 14A with reference to Rule 8D of ` 28,20,693/- and learned CIT (A) has upheld the disallowance made by the Assessing Officer. It is the submission or the learned AR that the matter should be restored back to the file of Assessing Officer with a direction to re-determine the disallowance as per the decision of Hon’ble Delhi High Court in the case of Maxopp Investment Limited vs. CIT 247 CTR 162 (Del). He submitted that admittedly Rule 8D has been held to have no retrospective effect, hence, will not be applicable for the assessment year under consideration. We find that this issue is now covered by the decision of Hon’ble Supreme Court in the case of JCIT vs. Rolta India Ltd. 330 ITR 470 (SC) wherein it has been held that interest u/s 234B and 234C shall be payable for failure to pay advance tax in respect of tax payable u/s 115JA/115JB.

Citation :
Central Warehousing Corporation,Warehousing Bhawan,4/1, Siri Institutional Area,August Kranti Bhawan,Hauz Khas,New Delhi.PAN: AAACC1206D (Appellant) Vs.ACIT (OSD),CIT-I,CR Building, IP Estate,New Delhi. (Respondent)