2003 (2) TMI 422

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..... the aforesaid Act. However, in the course of the assessment proceedings, the interest was offered to tax and accordingly, the Assessing Officer included the same in the chargeable interest. 3. The assessee appealed to the CIT(A) against the inclusion of the interest on debentures. The main contention taken was that the interest cannot be considered to fall under section 247 of the Act, under which only interest on "Loans and Advances" is taxable. It was also pointed out that the debenture interest is taxable as interest on securities under the Income-tax Act. Reference was also made to the speech of the Finance Minister while introducing the Interest Tax Bill. Reliance was placed on the order of the Madras Bench of the Tribunal in the case .....

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..... the same. As regards merits, it is contended that the issue is covered in favour of the assessee by the following orders/judgments : (i) Tata Industries Ltd. v. Dy. CIT [IT Appeal No. 56 (Mum.) of 1996, dated 16-10-2002] (ii) LIC v. Joint CIT [2002] 82 ITD 749 (Mum.) (iii) Discount & Finance House of India Ltd. v. S.K. Bharadwaj, CIT [2003] 259 ITR 295 (Bom.). (iv) CIT v. United Western Bank Ltd. [2003] 259 ITR 312  (Bom.) (v) CIT v. Lakshmi Vilas Bank Ltd. [1997] 228 ITR 697  (Mad.). 5. The learned DR relied on the judgment of the Bombay High Court in Rameshchandra & Co. v. CIT [1987] 168 ITR 375  to contend that if an assessment is based on an admission by the assessee and the assessee does not file an application for .....

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..... at any time thereafter before the ITO. The High Court, therefore, held that so long as the assessee's statement stood, it could not have a grievance in that behalf and was not entitled to appeal against the same. In our humble opinion, the judgment is not applicable where an admission or concession is made by the assessee on a pure question of law. No tax can be imposed or collected without the authority of law and merely because the assessee admits or concedes before the Assessing Officer that a particular amount is taxable in law, there being no dispute regarding the facts, it cannot be brought to tax. If still Assessing Officer has brought the same to tax based merely on concession made by the assessee, it cannot be equated to a concessi .....

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