9911796707
TMI Blog1993 (3) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... ar as its accounting year. The assessee firm is carrying on cloth business. On 23-5-1985, survey under section 133A of the Income-tax Act was conducted at the business premises of the assessee. During the course of survey operations, Shri Ram Lubhaya Kapoor partner made a surrender of Rs. 2 lakhs on behalf of the assessee firm. This surrender was made on the ground that there may be excess stock at the business premises as compared to the stock as per books of account. A sum of Rs. 1,00,000 was offered for assessment year 1983-84 and another Rs. 1,00,000 for assessment year 1984-85. It was given in writing by letter dated 23-5-1985 that the surrender was made voluntarily and without any pressure. The surrender was conditional in the sense t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Now we come to the revenue's appeals. The only ground taken in these appeals is that the first appellate authority erred in deleting the interest charged under section 217 amounting to Rs. 8,713 for assessment year 1983-84 and Rs. 5,831 for assessment year 1984-85. 5. Shri Narender Singh, the ld. Departmental Representative, submitted that the only reason for deleting the interest in the impugned order was that no mention thereof had been made while passing the assessment order. In this regard it was submitted that computation sheet was a part and parcel of the assessment order and since interest under section 217 had been indicated in the computation sheet, it must be deemed to be a part of the assessment order. Relying on the jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the body of assessment order was a flaw which could not be cured by incorporating the interest under section 217 in ITNS- 150. It was also submitted that the ld. CIT(A) could certainly go into the question of interest as the assessee was challenging the leviability of the same. The learned counsel for the assessee relied on the Calcutta High Court decision in the case of CIT v. Bengal Jute Mills Co. Ltd. (No. 1) [1987] 165 ITR 631, for the proposition that the question regarding levy of interest could be raised in appeal before the appellate authority. Relying on the Andhra Pradesh High Court decision in Vittal Reddy v. CIT [1987] 165 ITR 673, it was submitted that assessee objecting to assessment could legitimately raise a question rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determination of the tax, the latter being as crucial as the former. The Supreme Court held that the document which incorporated the calculation of tax and which carried the initial of the Assessing Officer should also be treated as part of the assessment order. The relevant observations of the Hon'ble Supreme Court in this regard are as follows :--- " ITNS-150 is also a form for determination of tax payable and when it is signed or initialled by the Income-tax Officer, it is certainly an order in writing by the Income-tax Officer determining the tax payable within the meaning of section 148(3). It may be only a tax calculation form for departmental purposes as it also contains columns and code numbers to facilitate computerisation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e non-leviability of interest falls within the jurisdiction of the appellate authority, the reduction/waiver does not. The question of reduction/waiver can be decided under Rule 40 of the Income-tax Rules which falls within the province and domain of the income-tax authorities. The learned counsel for the assessee has not pointed out as to how interest under section 217 in the present case was not leviable at all. In our opinion, the interest was certainly leviable as statement/estimate in lieu of statement/estimate as referred to in section 209A had not been sent by the assessee. 10. The assessee could certainly prefer a claim for reduction/waiver of interest before the income-tax authorities. We do not know whether such a course was tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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