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TMI Blog2002 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... were not barred by limitation?" - We do not wish to answer the questions referred to us. - No explanation has been given as to why the Inspecting Assistant Commissioner did not take appropriate steps. We, therefore, return the reference unanswered. - - - - - Dated:- 28-11-2002 - Judge(s) : S. H. KAPADIA., J. P. DEVADHAR. JUDGMENT The judgment of the court was delivered by S.H. KAPADIA J.-At the behest of the assessee, the Tribunal has referred the following three questions under section 256(1) of the Income-tax Act, 1961, to this court. The three questions are as follows: "1. Whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that the burden was on the assessee to prove by cogent and convin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enable the Tribunal to refer the questions to this court. Till today, the order passed by the earlier Division Bench has not been complied with. However, both the learned advocates appearing before me stated that we need not wait for the Tribunal to forward the statement of case. That, the matter can be disposed of on the paper book in this I.T.R. No. 44 of 1986. Accordingly, questions Nos. 1 and 2 have been framed by the court and with consent of all sides, the matter is proceeded with. Facts: In this case, we are concerned with the assessment years 1975-76 and 197677. On March 9, 1978, the Inspecting Assistant Commissioner (IAC) passed an order against the assessee-bank for non-deduction of tax at source from interest payable to non-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting Assistant Commissioner rejected the contention of the assessee on the ground that if the assessee's argument was to be accepted, viz., that the recipients have included the sums in their returns then, it would lead to a situation wherein any assessee can defer deduction and payment of tax and whenever such failures were detected, it can explain away its failure by stating that the concerned sums have suffered tax in somebody's hands, which would defeat section 195 of the Act. Being aggrieved, the assessee preferred appeal to the Commissioner of Income-tax (Appeals). The first appellate authority set aside the order of the Inspecting Assistant Commissioner and directed the assessing authority to verify whether the said sums have been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after giving opportunity to the assessee, the claim made by the assessee, viz., that the interest income has been taxed in the hands of the recipients. From March 10, 1980, till today, no such enquiry has been held. The correctness of the claim of the assessee has not been examined. No opportunity has been given to the assessee as directed by the Tribunal. We are informed that in 1981, the Inspecting Assistant Commissioner passed an order without hearing the assessee, which has been set aside by the Commissioner of Income-tax (Appeals). The Inspecting Assistant Commissioner was directed once again to carry out the directions of the Tribunal dated March 10, 1980. Thereafter, no steps have been taken for the last more than 20 years. No expla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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