Law:

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Section 234B, read with sections 234C and 115JA of the Income-tax Act, 1961 - Advance tax - Interest for default in payment of - Interest under sections 234B and 234C can be charged in cases where income of assessee is computed as per section 115JA [In favour of revenue] CASES REFERRED TO Jt. CIT v. Rolta India Ltd. [2011] 330 ITR 470 / 196 Taxman 594 / 9 taxmann.com 36 (SC)(para 5). Ms. Urvashi Dhugga for the Appellant. Akshay Bhan for the Respondent. JUDGMENT Adarsh Kumar Goel, J. - This order will dispose of I. T. A. Nos. 176 to 181 of 2003 as it is stated that all the appeals involve a common question of law. 2. I. T. A. No. 176 of 2003 has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (for short, "the Act"), against the order of the Income-tax Appellate Tribunal, Chandigarh, dated November 18, 2002, in I. T. A. No. 81 of 2001 proposing to raise the following substantial question of law : "Whether, on the facts and circumstances of the case, the hon'ble Income-tax Appellate Tribunal is right in law in upholding the decision of the Commissioner of Income-tax (Appeals) that interest under sections 234B and 234C cannot be charged in the cases where the income of the assessee is computed as per the provisions of section 115JA of the Income-tax Act, 1961 ?" 3. The Assessing Officer invoked the provisions of section 115JA and computed the tax on the book profit of the assessee. It was also held that the assessee was liable to pay interest under sections 234B and 234C of the Act. On appeal, the Commissioner of Income-tax (Appeals) deleted the demand of interest on the ground that under section 143(1), the Assessing Officer could not create a demand of interest on deemed income under section 115JA of the Act. The Tribunal upheld the said view. 4. We have heard learned counsel for the parties. 5. Learned counsel for the Revenue submits that the liability of interest is statutory and is applicable to liability of tax calculated on book profits under section 115JA as held by the hon'ble Supreme Court in Jt. CIT v. Rolta India Ltd. [2011] 330 ITR 470 / 196 Taxman 594/9 taxman.com 36. Learned counsel for the assessee is unable to…

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