Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1071 - KARNATAKA HIGH COURTLevy of interest for default in furnishing return of chargeable interest - Interest Tax Act 1974 - whether there being default in compliance of the notice under Section 10 of the Act by the appellant? - Held that:- Section 12 is applicable only when a voluntary statement filed by the assessee is beyond 31st December of that year or filed beyond the date prescribed in the notice under Section 7(2). When the assessee has filed the return within the period prescribed under Section 7(2) and when the notice is issued under Section 10 of the Act, the liability to pay interest under Section 12 is not attracted. The authorities have proceeded on the assumption, as the assessee has not filed any return at all from the due date prescribed under the statute till the date he files the return, he is liable to pay interest. The said levy runs counter to the statutory provisions contained in Section 12 of the Act. May be a person who has filed a belated return under Section 7 would be in a worst position than a person who has not filed the return. It is for the legislature to remedy such an absurdity. The Courts cannot place any interpretation on these Sections which do not fall from the words used there in. In that view of the matter, the impugned orders passed by the authorities are unsustainable, as they are contrary to the statutory provisions contained in Section 12, and they are liable to be set aside. The assessee is not liable to pay any interest under Section 12 of the Act. - Decided in favour of the assessee.
|