Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s Hotel Hamilton Complex Versus The Income Tax Settlement Commission, The Income-Tax Officer Ward-2 (2) , The Chief Commissioner of Income Tax

2017 (9) TMI 1235 - KARNATAKA HIGH COURT

Excessive interest u/s 234B beyond the date of the order passed by the Settlement Commission u/s 245D - Held that:- This Court finds considerable force in the submission made by the learned counsel for the assessee and the impugned orders passed by the Assessment Authority charging interest under Section 234B of the Act beyond the date of the order passed by the Settlement Commission under Section 245D(I) cannot be sustained. See Brij Lalís case [2010 (10) TMI 8 - SUPREME COURT] in which it is c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ax, has charged excessive interest under Section 234B of the Income Tax Act, 1961 beyond the date of the order passed by the Settlement Commission under Section 245D of the Act in Chapter 20A of the Income Tax Act, 1961. 2. In the present case, the order was passed by the Settlement Commission on 11.03.2008 for the block of the Assessment Years 1989-1990 to 1996- 1997. While appeal effect orders was passed by the Assessing Authority on 11.04.2008 vide Annexure B series, he has charged interest u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

03) 179 CTR (SC) 362) = ((2003) 259 ITR 449 (SC)), held as under: By its very nature, advance tax is a pre- assessment collection of tax either by deduction at source or by payment of advance tax which has to be adjusted towards income-tax levied on the total income. In fact, section 190(1) of the Income-tax Act, 1961, clarifies that this method of payment of tax will not prejudice the charge of tax under section 4(1) nor modify the liability of the assessee to pay income-tax pursuant to an asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y to pay interest under section 245D(2C) arises when the additional amount of income-tax is not paid within the time specified in section 245D(2A). Section 245D(6A) imposes liability to pay interest only when the tax payable in pursuance of an order of the Settlement Commission under section 245D(4) is not paid within the specified time. Consequently, section 234B, section 245D(2C) and section 245D(6A) in Chapter XIX-A operate in different fields. When one reads the provisions of sections 245C a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

isions dealing with regular assessment, self-assessment and levy and computation of interest for default in payment of advance tax, etc., are engrafted. In the case of proceedings before the Settlement Commission, till the Commission decides to admit the case under section 245D(1) the proceedings under the normal provisions remain open. But once the Commission admits the case, after being satisfied that the disclosure is full and true, the proceedings commence with the Settlement Commission. In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he date of the application for settlement after it is admitted by the Commission under section 245D(1). There are two distinct stages under Chapter XIX - A, and the Legislature had not contemplated levy of interest between the order under the section 245D(1) stage and the section 245D(4) stage. The Settlement Commission cannot reopen its proceedings under section 154 of the Income - tax Act, 1961, so as the levy interest under section 234B, particularly in view of section 245-I. 4. Learned couns .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version