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TMI Blog2011 (8) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income and assessed tax under section 158BC of the Act and when there is no assessed tax under section 158BC, consequently, interest under section 153BFA(1) of the Act would be nil. - the substantial questions of law are answered in favour of the assessee and against the Revenue. - 3219 of 2005 - - - Dated:- 11-8-2011 - SABHAHIT V. G., RAVI MALIMATH, JJ. JUDGMENT Ravi Malimath J.- 1. This appeal is by the Revenue being aggrieved by the order of the Tribunal dismissing the appeal by confirming the finding of the lower authority that the refund may be granted in accordance with the provisions of section 240(b) of the Income-tax Act, 1961. 2. The assessee is carrying on the business of pharmaceuticals. A search was cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest was levied under section 158BFA(1) of the Act for delay in filing the return from the date of issue of notice for filing the return along with payment of tax. He further held that the interest amount forms part of the returned income. Consequently, the claim of the assessee was rejected. Aggrieved by this order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), who by placing reliance on the order passed in the case of Micro Labs Ltd., held that the Assessing Officer has to retain only the tax chargeable on the returned income and the excess amount has to be refunded to the assessee in accordance with the provisions of section 240(b) of the Act. Accordingly, the relief was granted by allowing the appeal. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 158BFA(i) would be nil. For the reasons recorded therein, the Appellate Commissioner held that the Assessing Officer is directed to retain only the tax chargeable on the returned income and the excess amount, if any, be refunded in accordance with the provisions of section 240(b) of the Act. On appeal by the Revenue, the Tribunal on a similar reasoning dismissed the appeal. 8. On the annulment of the assessment proceedings, there would be no assessed undisclosed income and assessed tax under section 158BC of the Act and when there is no assessed tax under section 158BC, consequently, interest under section 153BFA(1) of the Act would be nil. 9. That the Revenue claims the interest under section 158BFA(1) for the delay in fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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