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2021 (9) TMI 476 - HC - Income TaxValidity of order of Income Tax Settlement Commission [ITSC] - deemed dividend under Section 2(22)(e) - Revenue contended that the ITSC erred in accepting the contention of the assessee for not including the advance amount received as liable to be taxed as deemed dividend - Levy of interest under Section 234A - HELD THAT:- It will be too late for the Revenue to now contend that the ITSC could not have settled the cases in respect of the assessment year 2012-13 and especially when this was never the ground raised by the Revenue either in the report filed under Rule 9 of the said Rules or in the subsequent report filed to the reply given by the assessees. Though the word 'disclosed' gives a slightly distorted meaning, a clear picture emerges if we see paragraph 11.2 of the order passed by the ITSC, which deals with settlement of income. The total income arrived at by the ITSC which alone shall be considered as the income disclosed for the purposes of an application under Section 245C of the Act. The Revenue need not have any apprehension over the income, which was initially disclosed at the time of filing the application under Section 245C of the Act because the said income, which was offered at the first instance was not accepted by the Revenue and a report under Rule 9 of the said Rules was filed and based on that, the Revenue suggested four additions and thereafter, the case was proceeded and the matter was settled. Therefore, in our considered view, there may not be any necessity to remand the matter for a fresh consideration and the interest under Section 234B of the Act has to be charged on the income settled by the ITSC and in terms of the decision of the Hon'ble Supreme Court in the case of Brij Lal [2010 (10) TMI 8 - SUPREME COURT], the interest would be chargeable upto the date of order under Section 245D(1) of the Act and not upto the date of the order of the ITSC under Section 245D(4).
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