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2002 (11) TMI 86 - HC - Income TaxAdventure In The Nature Of Trade - The first issue relates to the computation of profit on the sale of plot which had been assessed by the assessing authority as adventure in the nature of trade whereas the Commissioner of Income-tax (Appeals) directed the same to be taxed under the head "Capital gains". - Both the Commissioner and the Tribunal have followed the correct principles of law and no factual or legal error could be pointed out by the Department. - The other issue raised before the Tribunal was in regard to the levy of interest under section 234B of the Act. The Commissioner of Income-tax (Appeals) directed the Assessing Officer to charge interest under section 234B of the Act up to the date of determination of income under section 143(1)(a) of the Act. It is settled law that interest is levied under section 234B on the basis of returned income and not on the basis of the assessed income. The Tribunal was right in setting aside the finding of the Commissioner of Income-tax (Appeals) in this regard and remanding the case back to the assessing authority for this purpose.
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