9911796707
TMI Blog1993 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act, 1922, was to be calculated after deducting the D. I. T. relief admissible to the assessee-company from the total income-tax demanded even though the assessee's claim for D. I. T. relief was allowed subsequently by an order under section 154 of the Act passed by the Income-tax Officer ? " This reference relates to the assessment year 1954-55. As is evident from the question itself, the controversy relates to the chargeability of interest under section 18A(6) of the Indian Income-tax Act, 1922 ( " the Act " hereinafter). Under section 18A(6), as it stood at the material time, interest was payable by the assessee if the tax paid by him on his own estimate under sub-section (2) or sub-section (3) of that section was less than 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated at the rate aforesaid on the amount by which the tax as so assessed ( in so far as it relates to income to which the provisions of section 18 do not apply) falls short of the said eighty per cent. : Provided also that, where, as a result of an appeal under section 31 or section 33 or a revision under section 33A or of a reference to the High Court under section 66, the amount on which interest was payable under this sub-section has been reduced the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of income-tax that is refundable : Provided further that, where a business, profession or vocation is newly set up and is assessable on the income, profits and gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax payable by an assessee of a sum calculated on the doubly taxed income in the specified manner. Thus the tax determined on the basis of the regular assessment would be the amount of tax arrived at after deducting the amount admissible by way of double taxation relief. And hence, the interest under section 18A(6) shall have to be determined with reference to eighty per cent. of such amount as reduced by the double taxation relief. We are, therefore, of the clear opinion that the Tribunal was justified in confirming the Appellate Assistant Commissioner's order that the interest payable under section 18A(6) of the 1922 Act should be calculated after deducting the D. I. T. relief admissible to the assessee from the incometax calculate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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