TaxTMI 
TaxTMI 
2011 (3) TMI 1106
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....dated 30th November, 2004 admitted these appeals on the following substantial questions of law: "I) Whether in view of the fact that the Assessing Officer having issued the notice under Section 143(2) of the Act on 30th June, 1998 and started proceedings for regular assessment, he had no jurisdiction or competence or authority to issue the intimation on the same day and this point having been raised before the Tribunal and having been recorded also in the order of the Tribunal, the Tribunal acted illegally and improperly by not deciding the said question which affected the jurisdiction of the Assessing Officer to issue the intimation under Section 143(1)(a) of the Act? II) Whether in any event in issuing the intimation by the Assessing Officer disallowing the claim of Rs.1,46,37,744/- against the interest income assessed under the head 'other sources', the Tribunal should have cancelled and/or set aside the said disallowance made by the Assessing Officer when the question involves as to whether the interest income is to be allowed on the facts and in the circumstances of the case is a debatable one on which not only there are two views but also which involves the in....
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....ome, the interest expenditure relatable to earning interest income under the head other sources. The assessee, it appears from record, reduced the income under the head other sources by a sum of Rs.1,46,37,744/- being interest relatable to earning interest income. The Assessing Officer by intimation made under Section 143(1)(a) dated 30th June, 1998 changed the computation by not allowing the interest claimed amounting to Rs.1,46,37,744/- as deduction from interest income offered under the head other sources and levied additional tax under Section 143(1)(a) of the Act amounting to Rs.12,58,846/-. The Assessing Officer also levied interest under Section 201(1A) of the Act amounting to Rs.3,90,599/- in the intimation order dated 30th June, 1998 made under Section 143(1)(a) of the Act on the ground of delayed payment of tax deducted at source. d) The assessee preferred an appeal before the Commissioner of Income-tax(Appeal) against the intimation made under Section 143(1)(a) dated 30th June, 1998 and challenged the action of the Assessing Officer in disallowing the deduction of interest paid relatable for earning the interest income offered for taxation under the head other so....
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....e Act. Being dissatisfied, the assessee preferred further two appeals before the Income-tax Appellate Tribunal and by the order impugned in these appeals, the said Appellate Tribunal has dismissed both the appeals by overruling the submissions of the appellants. Being dissatisfied, the present two appeals have been filed. Dr. Pal, the learned senior counsel appearing on behalf of the appellants, has, at the first instance, submitted before us that the Assessing Officer having issued a notice under Section 143(2) of the Act on 30th June, 1998 and having started proceeding for regular assessment, acted without jurisdiction in issuing the intimation order and thus, the order of intimation passed under Section 143(1) (a) of the Act was liable to be quashed. After going through the order-sheet, we find that the order under Section 143(1) (a) of the Act was passed first on 30th June, 1998 and from the order-sheet it appears that the next order was for issue of notice under Section 143(2) of the Act although both were issued on the same date. Therefore, it is apparent on the face of record that the intimation order was first made under Section 143(1)(a) of the Act and ther....
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....sp; B) in a case where the loss so declared is reduced under sub-clause (ii) of this clause or the aforesaid adjustments have the effect of converting that loss into income, calculate a sum (hereinafter referred to as additional income tax) equal to twenty per cent of the tax that would have been chargeable on the amount of the adjustments as if it had been the total income of such person and specify the additional income tax so calculated in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1); C) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional income of such refund by an amount equivalent to the additional income tax calculated under subclause (A) or sub-clause (B) as the case may be; b) Where as a result of an order under sub-section (3) of this section or section 154 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount on which additional income tax is payable under clause (a) has been increased or reduced, as the case may be, the additional income tax shall be increased or reduced accordingly and - i) in a case ....