9911796707
TMI Blog2004 (10) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... , and discount on foreign usance bills of Rs. 66,20,036 as claimed by the appellant vide letter dt. 12th Nov., 1999, inspite of the fact that the said amounts do not fall within the definition of chargeable interest under s. 5 of the Interest-tax Act, 1974." 3. The relevant facts, briefly stated, are that assessee had filed the return declaring chargeable interest of Rs. 4,93,61,95,250 on 28th Nov., 1997. A notice under s. 7(2) of the Interest-tax Act, 1974, was issued. Subsequently, a detailed questionnaire along with the notice was issued to the assessee-bank. The assessee furnished reply in response to the requisition made by the AO. During the course of assessment proceedings, assessee filed a letter dt. 12th Nov., 1999, claiming cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O had not requisitioned the information about the deductions claimed by the assessee by way of letter filed in the course of assessment proceedings, the AO was justified in denying the claim to the assessee. It was further contended that in any case the AO has not considered the deductions on merits and as such in case the Bench is of the view that the claim of the assessee is to be considered, the matter be remitted back to the AO for consideration in accordance with law. 6. We have given our careful consideration to the rival contentions. It is not disputed that the assessee had not filed the revised return rectifying the mistake in the original return. So, however, during the course of assessment proceedings, the assessee had pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in which no defect was pointed out. The CBDT Circular No. 14(XI)/35, dt. 11th April, 1965, also supports the view that the AO is bound to make assessment in accordance with law and is not expected to take advantage of ignorance of an assessee as to his rights. In this case, the assessee had simply committed a mistake in filing the return. Since the mistake was pointed out by the assessee during the course of assessment proceedings, the AO ought to have considered the claim in accordance with law. Since the AO has not considered the claim of the assessee on merits, we set aside the orders of Revenue authorities and restore the issue to the file of the AO for the purpose of considering the claim of the assessee in accordance with law aft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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