TMI Blog2022 (9) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001-02. Similarly for the AY 2002-03 only during the assessment proceedings for the Assessment Year 2008-09 this break up was shown to the assessee by way of a show cause notice so the same cannot be treated as a proper disclosure by the Assessing Officer as required u/s. 245 - When the assessee have bonafidely has shown this interest income and offered in the Assessment year 2011-12 for taxation the same cannot be ignored. The Bombay High Court judgment [ 2009 (11) TMI 491 - BOMBAY HIGH COURT] referred by the Ld. CIT(A) is in the context of chargeability of interest u/s. 234B of the Act, the same is in no way relevant to the issue in hand before us. Therefore the addition made by the assessing officer without properly issuing intimati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he demand for the assessment year 1998-99. For the Assessment Year 2002-03, a Refund of Rs. 1,36,24,392/- which is includes of interest of Rs. 14,99,742/-, the same is also adjusted against the demand for the Assessment Year 2000-01 2005-06. The above interest of Rs. 15,50,000/- was given to the assessee on 28.02.2008 and Rs. 14,99,742/- was given on 26.03.2008. However the assessee has not offered the interest income in the Return of Income filed by the assessee. Therefore a show cause notice was issued to the assessee, why not the same be added as the income for the Assessment Year 2008-09. 2.1. In reply thereto the assessee submitted that giving effect to ITAT s order, refunds due to the assessee were adjusted against old arrears. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter hearing the assessee held as follows: Having gone through the entire arguments on both sides, the issues to be decided are:- i) whether the income coming into knowledge of the assessee is a determining factor for its accrual? ii) When does the interest u/s 244A granted, accrues? On the first issue the courts have decided that once the income has actually become receivable by the assessee, its knowledge to the assessee or otherwise is of no consequence. The following is the gist of the decision of Hon'ble Bombay High Court in the case of Gopal Ramnarayan Kasat reported at 328 ITR 556:- Interest under s.234B-Chargeability-Higher income determined on assessment-As profit earned by the assessee on receipt of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d granted during the previous year relevant to assessment year under question is held justified. The first and second grounds of appeal are therefore, dismissed. 5. The next ground of appeal against charging of interest u/s, 234A, 234B and 234C of the Act. The charging of interest is mandatory and consequential to the determination of total income and as no relief has been granted in the computation of total income, the ground is dismissed. 4. Aggrieved against the appellate order, the assessee is in appeal before us. 4.1. Ld. Counsel Mr. Ketan Shah appearing for the assessee submitted before us a copy of the intimation passed u/s. 245 of the Act which is reproduced: Office of the Assistant Commissioner of Income-Tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled a revised return offering the interest income of Rs. 30,49,744/- by filing the revised return on 26.03.2012, however after the present impugned order dated 02.11.2011 passed by the Ld. CIT(A). Thus the Ld. Counsel pleaded that there is no mala fide intention in not declaring the interest income by the assessee which is being a Cooperative Milk Producers Union. 4.3. The Ld. Counsel also submitted the rate of tax for both the Assessment Years 2008-09 Assessment Year 2011-12 being the maximum rate of 30%. However if the assessee would have known this details of interest determined u/s. 244A paid by the Revenue and offer for taxation in the Assessment Year 2008-09 itself instead of Assessment Year 2010-11, there may be small differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be expected to know from this intimation u/s. 245, the refund is inclusive of interest of 15,50,000/- determined u/s. 244A of the Act. It is further seen during the assessment proceedings for 2008-09, this issue was rised by the assessing officer in his show cause notice dated 19.10.2010. That the assessee also pleaded the no intimation of interest component in the 245 intimation by the assessing officer during the assessment proceedings and requested not to include the same in the assessment for the Assessment Year 2008-09. Having not been successful of this plea even before the Ld. CIT(A), the assessee has choosen to offer this income of Rs. 30,49,742/- for the Assessment Year 2011-12 by filing the revised return on 26.09.2012. 6.2. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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