IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 25TH MAY 2009 / 4TH JYAISHTA 1931 ITA.No. 3 of 2008() ------------------- ITA.452/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT ---------------------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.RAVINDRANATHA MENON, SENIOR ADVOCATE SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENT(S): APPELLANT ------------------------ ESCAPADE RESORTS (P) LTD., CASINO HOTEL, WILLINGTON ISLAND, KOCHI-3. ADV. SRI.P.BALAKRISHNAN FOR R1 THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 25/05/2009, ALONG WITH OP NO. 23222 OF 2002 ITA NO. 4 OF 2008 ITA NO. 5 OF 2008 ITA NO. 6 OF 2008 AND 97/2008 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & C. K. ABDUL REHIM, JJ. ------------------------------------------------- I.T. Appeal Nos. 3 to 6 and 97 OF 2008 & O.P. No. 23222 of 2002 ------------------------------------------------- Dated this the 25th day of May, 2009 JUDGMENT Ramachandran Nair,J. The question raised in the connected I. T. Appeals filed by the Revenue is whether the Tribunal was justified in cancelling levy and demand of interest on non-payment/short payment/delayed payment of advance tax under Sections 234B and 234C of the Income Tax Act. Following the judgment of the Karnataka High Court which was confirmed by the Supreme Court in CIT V. KWALITY BISCUITS LTD., (2006) 284 I.T.R. 434 (SC), this Court in CIT V. NILGIRI TEA ESTATE LTD., (2009) 312 I.T.R. 161 held that the provisions of advance tax contained in Chapter XVII are not applicable to tax payable on book profit under Section 115J of the Act. Even though senior counsel for the Revenue contended that for the relevant years involved in these case by virtue of sub-section (4) of Section 115JA, 2 advance tax is payable, we are still not inclined to accept the contention because substantially there is no difference between Section 115J and Section 115JA of the I.T. Act. Moreover, provision on payment of advance tax on current income remains unaltered inspite of introduction of tax on book profit for the various years provided through different provisions. We therefore follow our above referred decision and dismiss the departmental appeals. 2. Even though petitioner in O.P.No. 23222 of 2002 paid advance tax based on orders issued by the Officer, the position is the same because interest demanded is on advance tax payable based on income determined under Section 115J of the Act. We therefore allow the Writ Petition also quashing the order of the Commissioner and that of the Officer demanding interest under Sections 234B and 234C of the I. T. Act. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) 3 Judge. kk