9911796707
TMI Blog1982 (3) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... under other sources as under : "The assessee has filed Form 19A dated 28-3-1977 in which it is stated that a sum of Rs. 10,000 was paid as interest and Rs. 1,000 was tax deducted at source for the period 13-2-1975 to 12-6-1975. The assessee had taken loan on which interest of Rs. 10,000 has been paid and this sum was advanced to UMS Radio Factory (P.) Ltd. from which the assessee has recovered interest of Rs. 10,000 as per Form No. 19A dated 28-3-1977. The interest of Rs. 10,000 was paid during the account year ended 31-3-1976 relating to the assessment year 1976-77. Hence, the assessee should have claimed this interest payment for 1976-77 assessment itself. The assessee has actually received interest of Rs. 10,000 only during the previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceivable from UMS Radio Factory on the assessee's advance of Rs. 2,50,000 from 10-2-1975 to 10-5-1975 at 12 per cent (Rs. 7,500) plus from 11-5-1975 to 10-6-1975 (Rs. 2,500). Against this the interest payments were Rs. 11,200 and the net interest payment of Rs. 1,200 was claimed by the assessee as deduction for the assessment year 1976-77 which was allowed by the ITO. The certificate dated 28-3-1977 issued under rule 19A also refers to the interest for the period from 13-2-1975 to 12-6-1975. It is, therefore, patent that the interest due to the assessee from UMS Radio Factory of Rs. 10,000 was duty accounted for the assessment year 1976-77. The fact that the certificate under rule 19A was issued in March 1977 and the interest was actually r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility by assessment. We agree with the Commissioner (Appeals) that the gift-tax liability is a debt owed on the relevant valuation dates. The liabilities for gift-tax attaches as soon as the gift is made, though its quantification by assessment would necessarily take place after the close of the relevant accounting year. In the present case, the gifts in question were made long before the valuation dates, though the gift-tax assessments were pending as on the valuation dates under present consideration. The liability for gift-tax is, therefore, deductible. Our above view is supported by the Punjab High Court decision in Raja Sir Harinder Singh Brar Bans Bahadur v. WTO [1967] 64 ITR 394 and the Gujarat High Court decision in CWT v. Kantilal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
