Assessee can't escape mandatory tax under bona fide belief of not liable. ITAT

Facts in Brief:

1. The assessee's income was determined under section 115JB (of Income Tax Act, 1961). The interest under sections 234B (of Income Tax Act, 1961) and 234C (of Income Tax Act, 1961) was charged on the tax on MAT taxes under section 115JB (of Income Tax Act, 1961) by the Assessing Officer.

2. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer.

On appeal ITAT held:

3. When the levy of interest is mandatory, the assessee cannot seek to escape the mandatory levy being fastened on it under the plea that it had bona fide belief that it is not liable. It is not a case of reopening or revision or rectification of mistake that the assessee can take shelter under the plea that the issue was either debatable and/or two views were possible. A belief howsoeverbona fide cannot exonerate the assessee from the mandatory levy of interest under sections 234B (of Income Tax Act, 1961) and 234C (of Income Tax Act, 1961) assessment on book profit under section 115JB (of Income Tax Act, 1961).

4. In view of the above said discussion and placing reliance upon the decision of the Apex Court's decision in the case ofCIT v. Anjum M.H. Ghaswala [2001] 252 ITR 1/119 Taxman 352, CIT v. Rolta India Ltd.[2011] 330 ITR 470/196 Taxman 594/9 taxmann.com 36 (SC) and CIT v. Saurashtra Kutch Stock Exchange Ltd. [2008] 305 ITR 227/173 Taxman 322 (SC) there is no infirmity in the orders of the Commissioner (Appeals). Accordingly the same is upheld. 

Case Reference-Binani Cement Ltd. v. Deputy Commissioner of Income-tax, Central Circle-XXVIII, Kolkat

IN THE ITAT KOLKATA BENCH 'A'