9911796707
TMI Blog1996 (4) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... at the credit for tax deducted at source is to be given for the assessment year relevant to the previous year in which such tax was deducted at source and, consequently, the Inspecting Assistant Commissioner (Assessment) was competent to invoke jurisdiction under section 154 and withdrawing credit for tax deducted at source ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in confirming the order of the Income-tax Officer withdrawing interest originally allowed under section 214 and charging interest under section 215 originally not charged ? " The facts of the case are that while making the assessment for the assessment year 1977-78, the tax of Rs. 30,100 was deducted by Suran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required to see is that the tax has been deducted and deposited and credit has to be given in the year in which the income from which such deduction has been made is being taxed which would be the year following the accounting year in which such tax was deducted. The order of the Inspecting Assistant Commissioner was accordingly set aside and it was observed that the tax in respect of the assessment year 1977-78 was rightly allowed in the original assessment order. The order of withdrawal of interest under section 214 was also found not in accordance with law. In the second appeal before the Tribunal the provisions of sections 194A, 200 and 199 were taken into consideration. It was observed that under section 194A any person, not being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax on behalf of the person from whose income the deduction was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment made under this Act for the assessment year for which such income is assessable." The Income-tax Appellate Tribunal found that in the present case the tax was required to be deposited after the closure of the accounting year by Surana Enterprises in respect of the previous year 1977-78, the tax was neither deducted nor deposited. It was deducted on December 13, 1976, and February 28, 1977, and was required to be deposited within two months after the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose income the deduction was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment, including a provisional assessment under section 141A, if any, made for the immediate following assessment year. Section 2(9) of the Income-tax Act defines "assessment year" which means the period of twelve months commencing on 1st day of April, every year. The tax deducted was in respect of the income of the accounting year/previous year 1976-77, therefore, the following year would be taken into consideration to be the assessment year 1977-78. It appears that the view which the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said date falls in the assessment year 1978-79 of the payer while it falls in the assessment year 1977-78 of recipient assessee. The provisions of section 199 have contemplated that the credit has to be given in respect of the income of which the tax has been deducted in the assessment for the immediately following assessment year. The Income-tax Officer considered that the year of the recipient is relevant and not of the payer. If there are two plausible views, it cannot be considered to be a mistake apparent. The provisions of section 154 have to be invoked when the mistake is apparent that it does not involve any elaborate argument. The question whether it could be considered to be a mistake from the record was considered by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
