9911796707
TMI Blog2015 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... however, the petitioner declared that he had no taxable income. Pursuant to the intimation that was given to him under the Income Tax Act the respondent authorities issued a notice under Section 148 of the Income Tax Act and re-opened the assessment. In the re- assessment proceedings, the Income Tax Officer made an addition of Rs. 96,12,500/- towards income from other sources and completed the assessment accordingly. The additions made by the Income Tax Officer represented the difference between the declared cost of construction of the hotel building as per the petitioners books of accounts and the cost of construction estimated by the Departmental Valuation Officer. Ext.P1 is the assessment order that was passed against the petitioner. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal preferred by him against the assessment order, was substantially lower than what was originally estimated. It is pointed out that the petitioner therefore, obtained substantial advantage through the reduction of the amounts so estimated. As regards the contentions of the petitioner with regard to waiver of the interest, it is pointed out that the interest being statutory in nature, and intended to compensate the revenue for the withholding of tax that was due to it, could not be waived at the mere request of the petitioner. 3. I have heard Sri.V.P.Narayanan, the learned counsel for the petitioner and Sri.Jose Joseph learned Standing counsel for the Income Tax Department. 4. On a consideration of the facts and circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e due date for filing the return i.e. 31-07-2005. It is also an undisputed fact that no income was declared even in the return filed in response to notice u/s.148 on 22- 09--2006 even though the total income of Rs. 39,72,960/- was determined by the Tribunal which is the highest fact finding authority. Hence the assessee is liable to pay the tax on total income earned for the year in advance before 31- 3-2005 and to file the return declaring such total income on or before 31-7-2005. Levy of interest u/s.234B is held to be compensatory in nature by the judgment of Apex Court in CIT Vs. Pranoy Roy (2009) 309 ITR 231. Same view was expressed by various High Courts including the Hon'ble Bombay High Court in CIT Vs. Kotak Mahindra Finance Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing officer. In this case the assessing officer has found during the course of survey on 07-12-2005 that income chargeable to tax for the A.Y.2005-06 had escaped assessment for the reason of non-filing the return and disclosing the income and, as such, notice u/s.148 was issued on 10-04-2006. Return of income filed on 22-09-2006 was in response to notice u/s.148. No income was declared in the said return and no tax was paid. The assessee has not explained successfully the unavoidable circumstances for non-filing the return voluntarily despite the fact that total income of Rs. 39,72,960/- was finally determined by the ITAT for the year. Since none of the conditions laid down in clause(d) of para 2 of the order is fulfilled in this ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otel building and that it had paid advance tax by taking into account the cost of the said investment as reflected in its books of accounts. I am, however, not impressed with the said contention of the petitioner. When the additions, to the income disclosed by the petitioners in its returns, have been sustained to a particular extent by the appellate forum under the Act, then the finality of the assessment indicates that the amount sustained against the petitioner is the income on which he ought to have been paid tax at the very outset. The levy of interest is compensatory in nature and it is meant to compensate the department for the delay in getting the tax that was due to it. The conduct of the petitioner in the instant case does not cal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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