The Pr. Commissioner of Income-tax Central-­4 v. Official Liquidator For GOL Offshore Ltd
[Citation -2019-LL-0227-51]

Citation 2019-LL-0227-51
Appellant Name The Pr. Commissioner of Income-tax Central-­4
Respondent Name Official Liquidator For GOL Offshore Ltd.
Court HIGH COURT OF BOMBAY
Relevant Act Income-tax
Date of Order 27/02/2019
Judgment View Judgment
Keyword Tags additional liability • question of law • advance tax • demerger • levy of interest
Bot Summary: P.C: The Revenue is in Appeal against the Judgment of the Income Tax Appellate Tribunal, raising the following question for our consideration: Whether on the facts and in the circumstance of the case and in law, the Tribunal is justified in holding that the Assessee Company is not liable to pay interest under Section 234B and under Section 234C of the Act 2 Respondent Assessee is a company. The department seeks to levy interest under Section 234B and 234C of the Income Tax Act, 1961 for the assessee company having been failed to deposit the advance tax as per its advance tax liabilities. S.R.JOSHI 1 of 2 ::: Uploaded on - 01/03/2019 ::: Downloaded on - 05/03/2019 11:37:38 ::: itxa 1529 2016.odt In this context, assessee company had contended that, the advance tax could not have been anticipated on the basis of event which took place subsequently. CIT reported in 333 ITR 464, in which, it was held that, for the purpose of payment of advance tax, the assessee has to estimate his current income and then calculate the income tax on that basis in the entire financial year. The admitted fact is that, the demerger took place pursuant to the order of the Bombay High Court which event took place after the accounting period was over. The assessee company could not have anticipated such developments. 4 Learned Counsel for the Revenue contended that, the scheme of demerger was presented by the assessee itself and was pending, consideration by the High Court.


itxa 1529 2016.odt IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1529 OF 2016 Pr. Commissioner of Income Tax Central 4 .. Appellant. v/s. Official Liquidator For GOL Offshore Ltd., .. Respondent. Mr. N. C. Mohanty, for Appellant. CORAM: AKIL KURESHI & M.S.SANKLECHA, JJ. DATE : 27th FEBRUARY, 2019. P.C: Revenue is in Appeal against Judgment of Income Tax Appellate Tribunal (in short Tribunal ), raising following question for our consideration: Whether on facts and in circumstance of case and in law, Tribunal is justified in holding that Assessee Company is not liable to pay interest under Section 234B and under Section 234C of Act? 2 Respondent Assessee is company. department seeks to levy interest under Section 234B and 234C of Income Tax Act, 1961 (in short Act ) for assessee company having been failed to deposit advance tax as per its advance tax liabilities. However, it is undisputed that additional liability arose on account of demerger of company which happened only subsequent to closing of accounting period. S.R.JOSHI 1 of 2 ::: Uploaded on - 01/03/2019 ::: Downloaded on - 05/03/2019 11:37:38 ::: itxa 1529 2016.odt In this context, assessee company had contended that, advance tax could not have been anticipated on basis of event which took place subsequently. Tribunal in impugned judgment referred to and relied upon decision of this Court in Prime Securities Ltd., v/s. Asst. CIT reported in 333 ITR 464, in which, it was held that, for purpose of payment of advance tax, assessee has to estimate his current income and then calculate income tax on that basis in entire financial year. It was not possible for assessee company to anticipate events that take place in next financial year and pay advance tax on basis of this anticipated events. 3 observations of Court in said judgment fully cover present case. admitted fact is that, demerger took place pursuant to order of Bombay High Court which event took place after accounting period was over. assessee company could not have anticipated such developments. 4 Learned Counsel for Revenue, however, contended that, scheme of demerger was presented by assessee itself and was pending, consideration by High Court. Even if that be so, demerger can take shape only after High Court approve scheme by passing order in this respect. In circumstances, no question of law arises. 5 Appeal dismissed. (M.S.SANKLECHA,J.) (AKIL KURESHI,J.) S.R.JOSHI 2 of 2 ::: Uploaded on - 01/03/2019 ::: Downloaded on - 05/03/2019 11:37:38 ::: Pr. Commissioner of Income-tax Central-4 v. Official Liquidator For GOL Offshore Ltd
Report Error