Whether Interst u/s 234B & 234C will be levied, when tax liability calculated u/s 115JB i.e.under MAT, is a very controversial issue. Different High Court give contradictory judgement on this issue. However, a recent Bombay High Court decision in case of Natural Gems Limited, made it quite clear that no interest u/s 234B & 234C will be levied, when tax payable under MAT. Bombay High Court had relied on SC judgement in Kwality Biscuits, which gives the principle that book profit will be calculated only after end of the financial year, hence it is not possible to estimate tax liability.
Logically, this Bombay High Court seems to be prevail in near future as principle given by SC is still prevailed.
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