9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (6) TMI 561 - HC - Income TaxLevy of interest u/s 234B and 234C -mandatory or not - Computation of total income is made u/s 115J - Held that - the judgment passed in this appeal would be subject to the outcome of the Special Leave Petition Nos. 8158-8160/2010 - It is needless to say that till the disposal of the special leave petition by the Hon ble Supreme Court the revenue shall not recover the interest - Accordingly the appeal is allowed and substantial questions of law answered in favour of revenue and against assessee.
Issues:
Appeal against order passed by Income-tax Appellate Tribunal for assessment year 1999-2000 regarding levy of interest under sections 234B and 234C of the Income-tax Act, 1961. Analysis: The case involved an appeal by the revenue challenging the Income-tax Appellate Tribunal's order for the assessment year 1999-2000. The assessee had filed a return of income based on book profits as per section 115JA of the Income-tax Act, 1961. An intimation was issued levying interest under sections 234B and 234C, which was later deleted by the Commissioner of Income-tax (Appeals)-I, Bangalore. The revenue then appealed to the Tribunal, which dismissed the appeal. The revenue raised substantial questions of law regarding the applicability of interest under sections 234B and 234C to computation of total income under section 115JA of the Act. The Court considered a previous decision by a coordinate Bench and ruled in favor of the revenue, stating that the questions of law were answered in favor of the revenue and against the assessee. The respondent's counsel informed the Court about a Special Leave Petition filed in the Supreme Court against a related order, where recovery of interest was stayed. Considering this, the Court decided that the judgment in the present appeal would be subject to the outcome of the Special Leave Petition. It was emphasized that the revenue should not recover the interest until the Supreme Court disposed of the petition. Consequently, the appeal was allowed, substantial questions of law were answered in favor of the revenue, and the Income-tax Appellate Tribunal's order dated 7-6-2005 was set aside.
|
