2015 (8) TMI 1253 - HC - Income Tax

Assessability of the amounts under Section 44BB - Held that - In the light of the judgment of the Hon ble Apex Court in Oil & Natural Gas Corporation Limited vs. Commissioner of Income Tax & another (2015 (7) TMI 91 - SUPREME COURT) the substantial questions of law relating to the assessability of the amounts under Section 44BB have to be answered against the appellant / revenue. Liability to pay interest under Section 234B - Held that - In relation to the substantial questions of law relating to Section 234B we remit the matter back to the Assessing Officer to consider whether there is any liability under Section 234B on the basis that the amounts in question would fall to be assessed under Section 44BB of the Act.

Summary

Issues:
1. Assessability of amounts under Section 44BB of the Income Tax Act.
2. Liability to pay interest under Section 234B of the Income Tax Act.

Analysis:

*Assessability of amounts under Section 44BB of the Income Tax Act:*
The main substantial question of law in the appeals pertained to the assessability of amounts under Section 44BB of the Income Tax Act. The court noted that similar substantial questions of law were framed in all the appeals and decided to address them collectively. Referring to a judgment of the Hon'ble Apex Court, the court ruled that the substantial questions of law concerning the assessability of amounts under Section 44BB should be answered against the appellant/revenue. Consequently, the court resolved these questions against the revenue based on the aforementioned judgment of the Hon'ble Apex Court.

*Liability to pay interest under Section 234B of the Income Tax Act:*
Apart from the issues related to Section 44BB, two additional substantial questions of law revolved around the finding of the Tribunal regarding the liability to pay interest under Section 234B of the Income Tax Act. The court acknowledged that the Assessing Officer might need to reassess the liability to pay interest under Section 234B, even if all substantial questions of law were answered against the Revenue. Therefore, the court decided to remit this matter back to the Assessing Officer for further consideration. The court directed the Assessing Officer to evaluate whether there is any liability under Section 234B based on the premise that the amounts in question would be assessed under Section 44BB of the Act.

In conclusion, the High Court of Uttarakhand addressed the issues surrounding the assessability of amounts under Section 44BB of the Income Tax Act, ruling against the revenue based on a previous judgment. Additionally, the court remitted the matter concerning the liability to pay interest under Section 234B back to the Assessing Officer for further examination in light of the assessment under Section 44BB.