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TMI Blog2015 (1) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Section 8(2) or 8(3) was made prior to the issuance of notice under Section 10 of the Act and there being no default in compliance of the notice under Section 10 of the Act by the appellant? 2. The assessee is a private limited Company carrying on the business of money lending, corporate advisory services, internal audit services, handling agency services, etc., One of its sources of income was by way of earning interest. The assessee had not filed its return of income under the Interest Act, 1974 (hereinafter referred to as 'the Act') on the ground that it could not be treated as a loan Company or credit institution as defined in the Act. Consequently, it had not filed the return of chargeable interest voluntarily as required unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable Rs. 5,73,278/- Rs. 8,08,274/- Assessment year 1999-00 Net chargeable interest Rs. 99,79,487/- Interest Tax thereon Rs. 1,99,590/- Add: Interest u/s. 12 Rs. 1,63,590/- 12A Rs. 2,27,430/- 12B Rs. - Rs. 3,91,020/- Net Payable Rs. 5,90,610/- Assessment year 2000-01 Net chargeable interest Rs. 89,73,067/- Interest Tax thereon Rs. 1,79,461/- Add: Interest u/s. 12 Rs.1,07,640/- 12A Rs. 1,61,460/- 12B Rs. - Net Payable Rs. 2,69,100/- Rs. 4,48,561/- 4. The assessee filed an application on 22.2.2005 before the assessing authority for rectification of mistak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest at the rate of two per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of the furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of assessment under sub-section (3) of section 8, on the amount of the interest-tax on the chargeable interest as determined under sub-section (2) or sub-section (3) of section 8 as reduced by the interest-tax paid in advance. Explanation 1.- In this section, "due date" means the 31st day of December of the relevant assessment year or, as the case may be, the date on which return inresponse to a not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment under section 10, on the amount by which the interest-tax on the chargeable interest as determined on the basis of such reassessment exceeds the interest-tax on chargeable interest on the basis of earlier assessment aforesaid. (4) Where, as a result of an order under section 15 or section 17 of this Act or section 254 or section 260 or section 262 of the Income-tax Act, as applicable to this Act by virtue of section 21 of this Act, the amount on which interest was payable under sub-section (1) or sub-section (3) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and- (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act deals with a case where assessee has omitted or failed to make a return under Section 7 for any assessment year, the assessing officer may at any time serve on the assessee a notice containing all or any of the requirements which may be included in a notice under Section 7 and may proceed to assess and the provisions of the Act shall, so far as may be, apply, as if the notice were a notice issued under that Section. 7. Therefore, in the case of non-filing of return, the assessing officer had the discretion to invoke Section 7(2) or 10A, call upon the assessee to file the return as prescribed in Section 7. Section 12 applies to a case where the assessee files return under Section 7(1) beyond the due date i.e., 31st December of that y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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