TMI Blog2005 (5) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... same @ 20 per cent in the impugned intimation under s. 143(1)(a) constitutes a mistake apparent from the records which the AO ought to have rectified under s. 154. The AO's justification for his inertia is that in the computation sheet attached to the IT return, the assessee itself claimed the tax rate on interest at 15 per cent. There cannot be a mistake, according to the AO, in accepting assessee's own computation of income. 2. In the rectification petition dt. 21st Aug., 1997, which has lead to this litigation before us it was contended that the correct rate at which interest income was required to be taxed in the hands of the assessee-company is 15 per cent and not 20 per cent as is the rate taken in the intimation under s. 143(1)(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the CIT(A) also, and is in second appeal before us. 3. We have heard the rival contentions, perused the material on record and duly considered the factual matrix of the case as also the applicable legal position. 4. We find that the mandate of s. 143(1)(a) is quite clear and unambiguous inasmuch as "where a return has been made under s. 139, or in response to notice under sub-s. (1) of s. 142,............. if any refund is due on the basis of such return, it shall be granted to the assessee............". The only thing which entitles an assessee to refund of excess tax due to him is such a refund being due to him on the basis of such a return. Now, the question is how this exercise is to be carried out. It presupposes that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ignorance of an assessee as to his rights. It is one of their duties to assist taxpayer in every reasonable way, particularly in the matter of claiming and securing any relief and in this regard the officers should take initiative in guiding the taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. This attitude would in the long run benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Government ........" It is heartening to note that the CBDT has given such humane guidance to the field officers. The best thing that the field officers can do to enhance the respect for and trust in the Department, is to follow these v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he SEBI approval dt. 15th Oct., 1993, and RBI approval dt. 14th Oct., 1993, which were filed along with the return of income. This is stated in para Nos. 1 to 4 of the statement of facts filed before the CIT(A), which have not been disputed or controverted. This fact is also said to be recorded in the assessment order for the asst. yr. 1994-95. There is no dispute that the return was filed on 30th June, 1995, and that before it could be processed under s. 143(1)(a) of the Act, and on 8th July, 1996, the assessee filed a letter, inter alia, pointing out as follows: ".................. Moreover at the time of filing of IT return, our client had offered interest on debentures from companies on Rs. 15,50,466 on which, through oversight, tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable DTAA notified under that section. It is bounden duty of the AO to compute the tax liability in accordance with the law, which essentially implies that the tax liability is to be computed in accordance with the IT Act, and other applicable legal provisions-including, of course, notifications issued under the Act. It is futile to suggest, as has been strenuously argued before us by the enthusiastic Departmental Representative, that the notifications issued under s. 90 and duly notified in the Official Gazette need not necessarily be taken into account by the AO while computing the tax liability of the assessee, unless the claim in respect of the same has been made in the IT return itself. This argument, in our understanding, belitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
