TMI Blog1996 (3) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... nt confirmed by the Commissioner of Income-tax (Appeals) ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and in fact and had materials to hold,- (i) 'thus, in the first return of income, the assessee had stated the income at a higher figure than what is warranted in law' ; (ii) 'there has been no understatement of income in the first return and are not the above findings wrong and unwarranted since penalty is leviable for concealing the particulars of income/furnishing inaccurate particulars of such income' ? (iii) 'thus, in the first return of income the assessee admitted even the payment of interest also' ? (iv) 'such interest was found to be not due to the assessee in the subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case and when a percentage of the contract receipt alone is taxable and the entire interest receipt is taxable will not inclusion of interest receipts in the contract receipt, eschewing the difference, amount to concealment of the particulars of income or furnishing inaccurate particulars of such income and attract penalty under section 271(1)(c) also in view of the finding of 'failure of the assessee to bifurcate the receipts into contract receipts and interest receipts' ? 7. Whether, on the facts and in the circumstances of the case, should not the Tribunal have considered the issue under the relevant Explanation to section 271(1)(c) ? " It must be stated at the outset that reading the text of all these questions, they relate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thereto that the said amount was deposited by the Electricity Board in pursuance of the arbitration award in regard thereto. In regard to this revised return, the income admitted was accepted in an assessment under section 143(3) of the Act by an order dated March 30, 1987. It is observed that with regard to Rs. 5,48,167 assessment had escaped and in regard thereto a notice under section 148 of the Act was issued. There was a third filing of return on March 20, 1988, whereunder the additional income of Rs. 3,87,118 was shown. In regard to this, the facts were similarly explained in the annexed covering letter referring to an amount of Rs. 31,50,305 as the contract receipt including a sum of Rs. 6,59,485 towards interest attributable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire payment as " business income " and any part of the said payment could not be understood as falling in any other head, more especially " other sources " separately. In the process, in support reliance was placed on the decision of the Orissa High Court in Govinda Choudhury and Sons v. CIT [1977] 109 ITR 497 and other High Courts also. It was held that it showed furnishing of inaccurate particulars by showing the amount as falling under the wrong head as a result of which, it is observed that an advantage is sought for by reason of the contract receipt being subjected to only 11 per cent. taxation as against the amount of interest it had been shown in the other column would have been taxable to the extent of 89 per cent. of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the nature of the source of contract receipts and inclusion of contract interest in regard thereto. Factually, the tribunal observed that the intention of the assessee is manifest which would be clear from the accompaniments to the revised returns as well as the third return. The situation that now it is unnecessary to travel all the way to the Orissa High Court is placed by learned senior counsel to place the problem beyond all controversies as everything that is required is declared by the apex court in regard thereto. It is observed that if the amounts under a contract were not paid at the proper time and interest is awarded either for delay or in the nature of compensation, such interest would only be an accretion to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
