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2012 (12) TMI 83 - HC - Income TaxEnhancement of Assessment - power of CIT(A) to enhancement - held that:- When, in the course of considering the assessee's appeal on a different issue, the CIT (A) thought it fit to exercise his enhancement powers with reference to one aspect of assessment, which was not the subject matter of the appeal, it is no doubt true that Sec 251 of the Income Tax Act provides for such authority and jurisdiction to enhance the assessment.- But, then, Sub Section (2) of Section 251 of the Act, stated that such authority could be exercised only subject to the assessee being given a reasonable opportunity to show cause against such enhancement - order of tribunal set aside - matter remanded back to CIT(A) Spreading over of interest - assessment of income - held that:- In contrast to the decided case relating to claim of deduction as expenditure, the case on hand is related to the assessment of income. Even though the parameter for considering the expenditure and income is not the same, yet, the principle to be followed is that when the instrument concerned is certain as to its period of life and specifically points out to a particular interest amount to be paid on the maturity date, the question of assessing the entire interest in the first year itself, does not arise. - the question of assessing the entire interest income of Rs.3,10,43,664/- in the assessment year 1997-98 does not arise and that the Revenue would be entitled to assess a sum of Rs.3,37,431/- alone for the assessment year 1997-98 and the balance amount of Rs.3,07,06,233/- has to be assessed for the assessment year 1998-99.
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