Interest under s 234B and 234C

The assessee is liable to pay interest under s 234B and 234C on the tax payable on book profits computed under s 115J, notwithstanding the fact that it was a deemed profit, as held by KolHC in Bee Pee Jay Finance Ltd v CIT and Anr — In favour of: The revenue; ITA No 289 of 2003.

Precedent — Decision of the Supreme Court on a pure question of law is binding upon all the courts in India and the said decision cannot be avoided on the ground that the Supreme Court, in laying down the proposition of law, did not consider a vital aspect of the matter.

Decided on: 12 August 2011.