TMI Blog2005 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... an income-tax reference made at the instance of the assessee under section 256(1) of the Income-tax Act, 1961, by the Tribunal by an order passed in R.A. No. 83/85/Ind/97, dated November 13, 1999, which in turn arise out of an order passed by the Tribunal on May 23, 1997, in Interest-tax Appeals Nos. 1 and 2/Ind/91 to answer the following question of law said to arise out of the aforesaid appellate order: "Whether, on the facts and the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the order of assessment under section 8(2) of the Interest-tax Act 1974, dated January 6, 1989, is erroneous and prejudicial, to the interests of the Revenue and the Commissioner of Income tax has properly exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim on them was not only noticed to be erroneous, it was noticed to be prejudicial in the interests of the Revenue. It is on this basis, the Commissioner considered in the interests of the Revenue to invoke his revisionary powers under section 19 of the Act and after granting an opportunity to the assessee recalled the order of the Assessing Officer in so far as it related to the aforementioned issues. This is how and the manner in which the Tribunal decided the issue in question in paragraph 9 of their appellate order while upholding the order of the Commissioner when challenged unsuccessfully by the assessee in appeal: "Paragraph 9.-We have heard the rival submissions of the parties and carefully perused the orders of the authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank of Travancore [1986] 158 ITR 102, in which their Lordships have held that the interest on sticky loans is exigible to tax if the assessee has been maintaining the books of account by accepting the mercantile system, it appears to us that this judgment prompted the assessee to give a note about his treatment to the interest on sticky loans. Besides, the assessee has also filed two letters in which he has justified his claim of non-offering the export subsidy and interest on sticky loans to tax. The assessment order was passed on January 6, 1989 after the assessment order passed under the Income-tax Act for the assessment year 1985-86 in which the claim of the assessee with regard to the interest on sticky loans was rejected by the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while passing an assessment order. It is also brought to our notice that the set aside assessment order has been passed in which the claim of the assessee was rejected which was confirmed by the Commissioner of Income-tax (Appeals) and is still pending before us for disposal. The facts and circumstances of the case lead us to deduce that the Assessing Officer has not applied his mind and we are, therefore, of the view that the order of assessment is erroneous and prejudicial to the interests of the Revenue and the Commissioner of Income-tax has properly exercised this jurisdiction. Accordingly, we uphold the order of the Commissioner of Income-tax and dismiss the appeals of the assessee." In our considered opinion, the Commissioner seems ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
