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Levy of interest upheld

The assesse, declared nil income, but its book of profits, under s 115JB showed Rs 10,51,09,653. Intimation issued under s 143(1). AO after giving credit, levied interest under s 243C. CIT (Appeals) deleted the interest. The revenues appeal dismissed by the Tribunal, as CODs permission not obtained. Subsequently, the Tribunal allowed the revenues rectification of mistake under s 154. The High Court dismissed the assessees appeal.

1 The assessee-company engaged in financial services filed nil return. Income was computed under section 115JB. During the assessment proceedings, the assessee filed an application for credit.

2 The Assessing Officer allowed only certain portion of credit and levied interest under section 234C.

3 On appeal, the Commissioner (Appeals) deleted interest levied by the Assessing Officer by holding that there was no question of levy of interest under section 234C on computation of book profits under section 115JB.

4 The revenue filed appeal before the Tribunal which was dismissed on ground that the permission of COD was not obtained. Subsequently, the revenue filed an application under section 154 before the Commissioner (Appeals). The Commissioner (Appeals) rectified the order and levied interest under section 234C.

5 On further appeal, the Tribunal dismissed the same.

6 The assessee contended on appeal to the High Court that once the appeal by the revenue had been dismissed on the ground of non-obtaining of the COD permission, the revenue could not have sought for rectification of the earlier order passed.

On appeal, the High Court held as under:

The Tribunal, while passing the impugned order, held that the revenue's earlier appeal was dismissed not on merits but only on the ground of not obtaining COD permission. Hence, that by itself cannot bar the revenue from filing an application under section 154 for rectification of a mistake, which is apparent on the face of the record. It was further noted on the facts that the order of the jurisdictional High Court was already available on 31-3-2008 and, therefore, the non-consideration of the same is a mistake apparent on the face of the record. The finding recorded by the Tribunal was correct. The provision of seeking rectification is very much available to the revenue notwithstanding the earlier rejection of the appeal, which was not on merits. The consideration of the application for rectification of a mistake is very much available in view of the non-consideration of the judgment of the jurisdictional High Court as on the date of the passing of the order. Accordingly, there is no error committed by the Tribunal that calls for any interference nor any substantial question of law arises for consideration in the instant appeal.

Therefore, the appeal being devoid of merits is to be dismissed.

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Levy of interest upheld

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1 The assessee-company engaged in financial services filed nil return. Income was computed under section 115JB. During the assessment proceedings, the assessee filed an application for credit.&nbsp; 2 The Assessing Officer allowed only certain portion of credit and levied interest under section 234C.&nbsp; 3 On appeal, the Commissioner (Appeals) deleted interest levied by the Assessing Officer by holding that there was no question of levy of interest under section 234C on computation of book profits under section 115JB.&nbsp; 4 The revenue filed appeal before the Tribunal which was dismissed on ground that the permission of COD was not obtained. Subsequently, the revenue filed an application under section 154 before the Commissioner (Appeals). The Commissioner (Appeals) rectified the order and levied interest under section 234C.&nbsp; 5 On further appeal, the Tribunal dismissed the same. 6 The assessee contended on appeal to the High Court that once the appeal by the revenue had been dismissed on the ground of non-obtaining of the COD permission, the revenue could not have sought for rectification of the earlier order passed. On appeal, the High Court held as under: The Tribunal, while passing the impugned order, held that the revenue's earlier appeal was dismissed not on merits but only on the ground of not obtaining COD permission. Hence, that by itself cannot bar the revenue from filing an application under section 154 for rectification of a mistake, which is apparent on the face of the record. It was further noted on the facts that the order of the jurisdictional High Court was already available on 31-3-2008 and, therefore, the non-consideration of the same is a mistake apparent on the face of the record. The finding recorded by the Tribunal was correct. The provision of seeking rectification is very much available to the revenue notwithstanding the earlier rejection of the appeal, which was not on merits. The consideration of the application for rectification of a mistake is very much available in view of the non-consideration of the judgment of the jurisdictional High Court as on the date of the passing of the order. Accordingly, there is no error committed by the Tribunal that calls for any interference nor any substantial question of law arises for consideration in the instant appeal.&nbsp; Therefore, the appeal being devoid of merits is to be dismissed.

1 The assessee-company engaged in financial services filed nil return. Income was computed under section 115JB. During the assessment proceedings, the assessee filed an application for credit.  2 The Assessing Officer allowed only certain portion of credit and levied interest under section 234C.  3 On appeal, the Commissioner (Appeals) deleted interest levied by the Assessing Officer by holding that there was no question of levy of interest under section 234C on computation of book profits under section 115JB.  4 The revenue filed appeal before the Tribunal which was dismissed on ground that the permission of COD was not obtained. Subsequently, the revenue filed an application under section 154 before the Commissioner (Appeals). The Commissioner (Appeals) rectified the order and levied interest under section 234C.  5 On further appeal, the Tribunal dismissed the same. 6 The assessee contended on appeal to the High Court that once the appeal by the revenue had been dismissed on the ground of non-obtaining of the COD permission, the revenue could not have sought for rectification of the earlier order passed. On appeal, the High Court held as under: The Tribunal, while passing the impugned order, held that the revenue's earlier appeal was dismissed not on merits but only on the ground of not obtaining COD permission. Hence, that by itself cannot bar the revenue from filing an application under section 154 for rectification of a mistake, which is apparent on the face of the record. It was further noted on the facts that the order of the jurisdictional High Court was already available on 31-3-2008 and, therefore, the non-consideration of the same is a mistake apparent on the face of the record. The finding recorded by the Tribunal was correct. The provision of seeking rectification is very much available to the revenue notwithstanding the earlier rejection of the appeal, which was not on merits. The consideration of the application for rectification of a mistake is very much available in view of the non-consideration of the judgment of the jurisdictional High Court as on the date of the passing of the order. Accordingly, there is no error committed by the Tribunal that calls for any interference nor any substantial question of law arises for consideration in the instant appeal.  Therefore, the appeal being devoid of merits is to be dismissed.

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Levy of interest upheld