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Judgment
Aravind Kumar, J.—The revenue is in appeal assailing the order passed by the income tax Appellate Tribunal, Bangalore in ITA No. 15/Bang./2003, dated 7-6-2005 for the assessment year 1999-2000. The facts leading to filing of this petition are as follows:-
(a) For the assessment year 1999-2000, the assessee filed return of income on the book profits of the assessee in accordance with section 115JA of the income tax Act, 1961 (hereinafter referred to as "Act" for the sake of brevity).
(b) An intimation u/s 143(1)(a) of the Act was issued on 18-12-2000, where under interest under sections 234B and 234C of the Act was levied.
(c) Aggrieved by the same, assessee filed an appeal before the Commissioner of income tax (Appeals)-I, Bangalore and the contention of the assessee came to be accepted by order dated 3-12-2001 and levy of interest was ordered to be deleted.
(d) Against the said order dated 3-12-2001 the revenue filed an appeal before income tax Appellate Tribunal, Bangalore which appeal came to be dismissed by order dated 7-5-2005, against which, the revenue is in appeal before this Court raising the following substantial questions of law:-
(1) Whether the law declared by this Hon''ble Court in M/s. Kwality Biscuits holding that no levy of interest can be made under sections 234B and 234C of the Act when computation of total income is made u/s 115J of the Act can also be extended to computation of total income made u/s 115JA of the Act which commences with a non-obstante clause to compute the total income in accordance with the book profits, as contemplated in the said section and saves all other provisions of the Act under sub-section (4) of the said section which would include sections 234B and 234C of the Act?
(2) Whether the Tribunal should have taken into consideration the object of introducing the new provisions of section 115JA of the Act, the Finance Act pertaining to assessment year 1999-2000 and the Board Circular which clearly contemplated that under the new provisions, levy of interest under sections 234B and 234C of the Act was mandatory?
We have heard learned advocates appearing for the parties.
It is submitted at the bar that very issue regarding levy of interest u/s 234B and 234C is covered by the decision of a coordinate Bench of this Court in ITA No. 320 of 2004 and other connected matters dated 20-9-2009, wherein the questions of law raised in this appeal have been answered in favour of the revenue and against the assessee. In view of the same, the questions of law formulated hereinabove are answered in favour of the revenue and against the assessee.
It is brought to our notice by Sri. K.P. Kumar, learned senior counsel appearing for the respondent/assessee that against the order dated 20-9-2009 passed in ITA No. 320/2004 referred to above, a SLP in SLP Nos. 8158-8160/2010 has been filed before the Hon''ble Supreme Court and notice has been ordered and recovery of interest has been stayed.
In view of the said submission, we are of the considered view that the judgment passed in this appeal would be subject to the outcome of the SLP Nos. 8158-8160/2010. It is needless to say that till the disposal of the SLP by the Hon''ble Supreme Court, the revenue shall not recover the interest. Accordingly, the appeal is allowed and substantial questions of law answered in favour of revenue and against assessee. Order dated 7-6-2005 passed in ITA. Nos. 15/Bang./2003 by income tax Appellate Tribunal is hereby set aside.