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2015 (8) TMI 876 - ITAT KOLKATAExplanation to section 73 - whether the main source of income of the assessee company was share trading and not income from other sources? - CIT(A) held that by virtue of main source of income of the assessee being “Income from other sources” explanation to section 73 was not applicable - Held that:- In the present case, the AO has considered the income of ₹ 30 crores, disclosed u/s. 132(4) by the assessee as income from other sources because such income was declared to buy peace and there is no evidence in the form of seized documents as per the assessment order, to correlate such income with any business transactions. This income is not declared against any undisclosed assets such as cash, jewellery etc. as per the assessment order so that it could be deemed as an income u/s. 69 etc of the Act. It has been held that the income declared u/s. 132(4) is required to be taxed under the head “Income from other sources”. If the income declared u/s. 132(4) is considered to be “Income from other sources”, then the main income of assessee would be income from other sources and assessee company would be covered under the first exception to explanation below section 73 and by virtue of main income assessee being the “income from other sources”, then explanation to Section 73 is not applicable. Accordingly, in the facts and circumstances of the case, we find no infirmity in the impugned order of the ld.CIT(A). We uphold the same. - Decided against revenue. Interest u/s. 234B - whether interest should not be charged from 01/05/2008 because assessee had made a request to adjust the cash so seized from M/s. Shoparna Bros. P.Ltd towards estimated tax liabilities of the assessee in the statement recorded u/s. 132(4) during the course of search on 08-04-08? - CIT(A) accepted the arguments made by the assessee and held that calculation of interest u/s. 234B the AO should have credited the tax of ₹ 10,06,00,000 from 06-08-2008 because subsequent delay in such credit was a delay on part of the AO beyond the time allowed by the Income Tax Act - Held that:- No infirmity in the order of the ld. CIT(A), who has rightly held that credit of ₹ 10,06,00,000/- w.e.f 06-08-2008 because subsequent delay in such credit was a delay on the part of the Assessing Officer beyond the time allowed by the Income Tax Act. Interest u/s. 234A is chargeable even on a return filed in time but taxes due remaining unpaid after the due date of filing of return of income. Therefore, in calculation of interest u/s. 234B, Assessing Officer should give credit for tax of ₹ 10,06,00,000/- from 06-08-2008 because subsequent delay in such credit was a delay on part of the Assessing Officer beyond the time allowed by the Income Tax Act. Therefore, CIT(A) correctly directed the Assessing Officer to calculate the interest u/s. 234B accordingly.- Decided against revenue.
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