A.K. Mathur, C.J.

1. This is a reference under Section 256(1) of the Income Tax Act, 1961 (for short, " the"), at the instance of the assessee and the following question of law has been referred by the Tribunal for answer by this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was liable to pay interest under sections 234B and 234C of the Income Tax Act "

2. The brief facts for disposal of this reference are as under ; The assessee-company filed a return on December 29, 1989, showing an income of Rs. 62,610 which was computed under Section 115J of the. The assessment was completed by accepting the returned income. Later it came to the notice of the authorities that there has been underassessment of the income inasmuch as it related to the depreciation aspect. In the computation of the income, depreciation had been claimed as provided under Section 32 of the Act, whereas while computing the income under Section 115J, depreciation was required to be calculated as per Schedule XIV to the Companies Act. In view of the above position, notice under Section 148 of thewas issued in response to which the assessee-company filed a return on January 28, 1993, showing an income of Rs. 6,34,648 computed under Section 115J of the Income Tax Act. Notice under Section 143(2) of thewas issued fixing the case on March 18, 1993. The Assessing Officer, after computing the income of Rs. 6,34,648 under Section 115J of the Act, issued a demand notice by order dated March 18,1993. Aggrieved against this order, an appeal was preferred before the Commissioner of Income Tax (Appeals); the Commissioner of Income Tax (Appeals), affirmed the order of the Assessing Officer. It was contended that there is no provision for advance tax on deemed income under Section 115J of theand, therefore, charging interest under sections 234B and 234C of the was not justified. The Commissioner of Income Tax (Appeals), after referring to a decision of the Delhi Bench in the case of Steel Authority of India Ltd. v. Deputy CIT [1991] 38 ITD 193, held that interest is not chargeable under sections 234B and 234C of the. He, therefore, allowed the appeal in part on this question only. Aggrieved by this order, the Revenue filed an appeal before the Tribunal and the Tribunal, in view of the Special Bench decision given in the case of Sutlej Cotton Mills Ltd. v. ACIT , has overruled the earlier decision of the Delhi Tribunal in the case of Steel Authority of India Ltd. [1991] 38 ITD 193. Therefore, the learned Tribunal affirmed the levy of interest under Sections 234B and 234C of the and reversed the finding of the Commissioner of Income Tax (Appeals) and allowed the appeal of the Department. Hence, the present reference has been made by the Tribunal at the instance of the assessee.

3. We have gone through the order passed by the learned Tribunal. Sections 234B and 234C of the do not make any reference of Section 115J. Section 234B only lays down that where advance tax is required to be paid under Section 208 of theand there is a failure or that if the amount of the advance tax paid under the provisions of Section 210 is less than 90 per cent, of the assessed tax, then in that case, the assessee is liable to pay interest. Similarly, Section 234C also, with regard to interest for deferment of advance tax, says that if the company has to pay advance tax on its current income on or before the 15th day of June, and such tax paid is less than 15 per cent, of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September, is less than 45 per cent, of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December, is less than 75 per cent, of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and one-half per cent, per month for a period of three months on the amount of the shortfall from 15 per cent, or 45 per cent, or 75 per cent., as the case may be, of the tax due on the returned income. Therefore, on a reading of both the provisions, there is no mention that in case of Section 115J, both the sections will not become applicable. The only crux of the matter is that whenever the assessee pays advance tax under Section 208 of the Act, irrespective of Section 115J, he has to pay the tax and if the tax deposited is less than 90 per cent., the assessee will have to pay simple interest.

4. We are satisfied that the view taken by the Tribunal is correct and we answer the question in favour of the Revenue and against the assessee.