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2006 (1) TMI 221 - AT - Income TaxMinimum Alternate Tax - Profit & Loss Account - interest on income-tax - terms "income-tax'' - HELD THAT:- The terms "income-tax", "interest", "penalty" and "fine", as used in the Income-tax Act, carry different meanings and connotations. In this connection, the provisions of section 156 are quite relevant. According to section 156, where any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under the Income-tax Act, the Assessing Officer is required to serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable. Two propositions clearly emerge from the provisions of section 156. First proposition is that the terms "income-tax", "interest", "penalty" and "fine" are neither inter-changeable nor overlap with each other in their meaning. Second proposition which emerges from section 156 is that the phrase "sum so payable" as used therein includes not only income-tax but also interest, penalty and fine or any other sum which is found to be payable in consequence of any order passed under the Income-tax Act. The provisions of section 156 clearly highlight the fact that income-tax, interest, penalty, and fine are distinct terms and that the term "tax" does not include "interest", "penalty" and "fine". In our humble view interest on income-tax clearly falls outside the scope of the term "income-tax" as used in Explanation (a) to sub-section (2) of section 115JA. Wherever the intention was to include interest, the Legislature has specifically provided, as in section 156, for inclusion of interest in the phrase "sum payable". No provision of law has been brought to our notice to show that the term "income-tax" has been defined to include "interest" within its ambit. We are, therefore, unable to artificially extend the scope of income-tax used in Explanation (a) to sub-section (2) of section 115 JA so as to include "interest on income-tax" also. Thus, the appeal filed by the assessee is allowed.
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