Court : Kolkata
Reported in : (2003)183CTR(Cal)445,[2003]261ITR731(Cal)
..... the subject matter of challenge in this writ petition comprises two several notices both dated february 12, 1999, issued under section 10 of the interest-tax act, 1974, seeking to reopen the assessment of income for the assessment years 1993-94 and 1994-95 on the ground that the joint commissioner of income-tax has reasons to believe that income from interest chargeable to tax for the aforesaid years escaped assessment within the meaning of section 10 of the interest-tax act, 1974. ..... the petitioner challenged the aforesaid notices both dated february 12, 1999, seeking to reopen the assessment under section 10 of the interest-tax act, 1974, inter alia, on the ground that condition precedent for exercise of power under that section does not exist and that the change of opinion is not a ground for reopening. ..... -tax for the assessment year 1993-94 by sri biswas and for the assessment year 1994-95 by sri meena, holding that the petitioner was not an investment company and thereafter pursuant to (a) objection raised by the audit stating that 'the assessee was liable to pay interest-tax under the interest-tax act, 1974' ; (b) instructions of the central board of direct taxes to take remedial measure wherever there is an audit objection, reasons were recorded by the joint commissioner of income-tax for issuance of notice under section ..... however, the assessee did not file interest-tax return for the assessment year 1994-95,issue notice under section 10 of the interest-tax act, 1974.'8. .....
Tag this Judgment!Court : Chennai
Reported in : [1998]233ITR104(Mad)
..... in some other writ petitions, the assessing officer issued a notice to the writ petitioner to the effect that he had reason to believe that chargeable interest assessable under the provisions of the interest-tax act, 1974, for the assessment year 1992-93 has escaped assessment within the meaning of section 10 of the interest-tax act, 1974, and, therefore, he called upon the petitioner to file ..... , the petitioner prays for the issue of a writ of declaration to declare that the petitioner is not a finance company within the meaning of section 2(5b)(va) of the interest-tax act, 1974 (central act 45 of 1974). 3. ..... , in each of the writ petitions, cannot contend that it is not a credit institution falling within the meaning of section 2(5a) of the interest-tax act, 1974. 21. ..... interest-tax act, 1974 (central act 45 of 1974), came into force with effect from september 23, 1974 ..... in the remaining cases, the petitioner-co-operative society contended that section 2(5b)(va) of the interest-tax act is not applicable to the petitioner-co-operative society and on that basis, the petitioner seeks for the issue of a writ of certiorari to quash the notice ..... sub-section (2) of section 4 reads thus : 'notwithstanding anything contained in sub-section (1) but subject to the other provisions of this act, there shall be charged on every credit institution for every assessment year commencing on and from the 1st day of april, 1992, interest-tax in respect of its chargeable interest of the previous year .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2006)100ITD462(Kol.)
..... 1993-94 has escaped from assessment, a notice under section 10 of the interest-tax act, 1974, was issued on ..... ao has, in consequence of information in his possession, reason to believe that chargeable interest assessable for any assessment year has escaped assessment or has been underassessed or has been the subject of excessive relief under this act.from the analysis of the above provisions, it is clear that it is pre-requisite that the ao should record the reasons to the effect that interest income has escaped assessment under interest-tax act, 1974.while recording the reasons the ao must have reasons to believe on the basis of material ..... the ao passed the orders under section 8(2)/10 of the interest-tax act, 1974 (the act), reopening and reassessing the interest-tax chargeable on the assessee and thereby imposing liability on the assessee ..... interest-tax act, 1974, the charging section is section ..... assessee falls in the category of 'credit institution' falling within the ambit of section 2(5a) and 2(5b) of interest-tax act, 1974? ..... of audit party, it is seen that it has raised an issue which is purely legal issue and it is almost settled proposition that an opinion of audit party on any point of law cannot be regarded as "information" occurring in relevant section 10 of the interest-tax act, 1974. ..... learned ao erred in having entertained this belief without holding that assessee is a credit institution falling within the ambit of section 2(5a) or 2(5b) of the interest-tax act, 1974. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Lucknow
Reported in : (2002)82ITD176Luck
..... 13,25,079.31 has escaped the assessment within the meaning of section 10(a) of the interest-tax act, 1974. ..... as per provisions of the interest-tax act, 1974, the assessee-company is liable to pay the interest-tax as per section 5 of the interest-tax, for assessment year under consideration assessee has not filed the interest-tax return stipulated in section 7 of the interest-tax act, 1974. ..... a perusal of the above, goes to demonstrate that the ao had applied mind and held that there were reasons to believe that chargeable interest had escaped assessment within the meaning of section 10(a) of the interest-tax act. ..... the ao found that in the final accounts filed along with the return of income under the it act, 1961, the finance charges were nothing but interest charges on the money financed to the hire and therefore, these came "in the definition of chargeable interest" as per section 5 r/w section 2(7)/2(58) (sic) of interest tax act, 1974. ..... a copy of the reasons for issuing notice under section 10 of the interest-tax act, 1974, has also been filed, which finds place at page no ..... the learned counsel for the assessee, shri garg cited several decisions to canvass the point that the notice under section 10 of the interest-tax act being akin to notice under section 148 of the it act, 1961, is a jurisdictional notice and, therefore, if the notice is invalid, the entire assessment order and proceedings of assessment stand vitiated. ..... notice under section 10 of the interest-tax act, 1974." 12. .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : [2001]255ITR1(AP)
..... in this writ petition, the petitioner-bank is assailing the notices issued under section 10 and subsequent notices issued under sections 8(1) and 8(2) of the interest-tax act, 1974, for the assessment years 1992-93, 1993-94 and 1994-95 and prayed for the issue of a writ of certiorari or any other appropriate writ calling for the records relating to the issue of the above ..... to tax has escaped assessment, the assessment is reopened under section 10 of the interest-tax act. ..... believe that by reason of the omission or failure on the part of the assessee to make a return under section 7 for any assessment year or to disclose fully and truly all material facts necessary for his assessment for any assessment year, chargeable interest for that year has escaped assessment or has been underassessed or has been made the subject of excessive relief under this act, or (b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part ..... of the assessee, the assessing officer has, in consequence of information in his possession, reason to believe that chargeable interest assessable for any assessment year has escaped assessment or has been underassessed .....
Tag this Judgment!Court : Mumbai
Reported in : (2001)168CTR(Bom)99; [2001]249ITR612(Bom)
..... therefore, he contended that there was no legal valid and binding circular issued in accordance with law and, therefore, the assessing officer was entitled to proceed and has rightly proceeded against the uti under section 10(a) of the interest-tax act, 1974. ..... the substance of the argument on behalf of the uti on this point is in short that section 10a of the interest-tax act refers to escapement of interest from assessment on account of the uti's failure to file its returns under section 7 of the interest-tax act. ..... 1 for failure on the part of the uti to file its returns under section 7 of the interest-tax act for the aforestated period because he had reason to believe and that thereby chargeable interest had escaped assessment. ..... he contended that if an opinion is taken by an chartered accountant of a assessee who opines that the return should not be filed under the act and if the assessee acts on such opinion, it would be no defence on the part of the assessee to the notice under section 10(a) of the interest-tax act if such omission results in escapement from assessment and, therefore, the word 'omission' to file the return is a colourless word as held by the bombay high court in pannalal nandlal bhandari v. .....
Tag this Judgment!Court : Mumbai
Reported in : 2001(3)BomCR673; 2002(1)MhLj301
..... he contended that if an opinion is taken by an assessee of a chartered accountant who opines that the return should not be filed under the act and if the assessee acts on such opinion, it would be no defence on the part of the assessee to the notice under section 10(a) of the interest tax act if such omission results in escapement from assessment and, therefore, the word 'omission' to file the return is a colourless word as held by the bombay high court in : [1956]30itr57(bom) . ..... (iv) findings of the court on the question of conflict between section 32 of the uti act, 1963 and the interest tax act, 1974: in view of our discussion hereinabove, there is no conflict between section 32 of the uti act and the provisions of the interest tax act 1974. ..... questionsanswers (a) whether the interest-tax under the interest-tax act, 1974, isa tax on income and, if so, whether interest accruing to the uti fromloans advanced by it stands exempted in view of section 32 of the utiact, 1963 ? ..... therefore, on a bare reading of the interest tax act, 1974 we are of the view that the interest tax is not a tax on income; that it is a tax on gross receipt of interest; that even if the net result of business of a credit institution is a loss, yet, such credit institution will have to pay interest tax on the gross interest; that no deductions are allowed while computing interest chargeable to interest tax except the bad debt. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1983SC586; (1983)2CompLJ209(SC); 1983(1)SCALE390; (1983)3SCC1; [1983]2SCR754
..... the appeal was filed under section 27 of taxes on entry of goods into calcutta metropolitan area act, 1972 (hereinafter referred to as the 'act of 1972') against the assessment of entry tax made in form v no. ..... annexure vi is the entry tax officer's notice dated 24/31.5.1979 calling upon the petitioners to appear before him on 12.6.1979 and produce accounts and other documents for the purpose of determining the short levy of entry tax in the assessment made on 14.7.1974 in respect of which a demand for payment in part ii of form v no. ..... : [1974]1scr25 which related to 'best judgment' method of assessment under section 18(4) of the m.p. ..... but in the latter part of april and early part of may 1974 the respondents declined to issue transport passes under section 21 of the act of 1972, in respect of horlicks powder which was not intended for sale, use or consumption within the calcutta metropolitan area and sought to levy entry tax thereon. ..... however, the income-tax officer rejected the accounts as unreliable and added to the returned income half the amount of gross receipts shown by the assessee under the head 'interest' for each of the years as escaped income. ..... thus, on 1.4.1973 rules 2 and 4(1) have been amended; on 15.1.1974 rule 4(1) has been further amended; on 1.2.1974 rule 3 was substituted by a new rule; on 25.11.1975 rule 42 was added; and on 28.9.1976 a proviso to rule 12(1) has been added.11. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : [1986]160ITR526(P& H)
..... 1845 and 1642 of 1985 by the same petitioner, different notices pertaining to different assessment years issued to him under section 147/148 of the income-tax act, 1961 (for short ' the act '), by the income-tax officer, faridkot, are impugned on similar grounds ; and these are being disposed of through ..... impugned notices have been issued concededly after obtaining the sanction of the commissioner under section 151(2) of the act, on the grounds that, firstly, the petitioner had not filed any return for the years in question resulting in escapement of tax and, secondly, that the amount of interest referred to above, which was paid to the petitioner for the period october 5, 1974, to may 6, 1982, had in any case to be spread over different assessment years. ..... firstly, as a matter of fact, the petitioner had filed the retuns in time except for the year 1975-76 and he had even been assessed to different amounts of tax, vide different orders prior to the receipt of the amount of interest by him on june 15, 1982; secondly, for the reason that no income had accrued to him prior to june 15, 1982, or in any case, prior to november 19, 1981, the day this court pronounced the final ..... are :(i) what is sought to be urged by mr, ashok bhan now is neither pleaded in the written statement nor was it the case of the department while moving the commissioner under section 151(2) of the act;(ii) section 153 (1) and (2) only deals with the limitation for passing of an assessment or reassessment order. .....
Tag this Judgment!Court : Kolkata
Reported in : (1987)59CTR(Cal)272,[1987]166ITR867(Cal)
..... the assessment was, however, reopened subsequently under section 147 of the act of 1961 on the ground that income arising from the receipt of rebate on excise duty and duty drawback and interest on deposits of such rebate and drawback had escaped assessment in the said year.8 ..... for the assessment year 1972-73, an assessment was made initially under section 143(3) of the income-tax act, 1961. ..... on an application of the revenue under section 256(1) of the income-tax act, 1961, the tribunal has referredthe following questions, as questions of law arising out of its order, for the opinion of this court :'1 ..... in the partnership by the assessee and they had agreed to share the profits and losses in proportion to their individual contributions.on these facts, it was held by a division bench of the bombay high court that in the assessment of the assessee to income-tax, what was to be considered was not the income allocated to his share in the partnership but his real income. ..... interest was paid to the clients who owned the amounts at a lower rate and the difference was utilised by the firm.in its assessment to income-tax, the taxpayer claimed relief in respect of interest earned on deposits and the difference between the interest charged and the interest allowed to clients on money lent claiming that the same were earned ..... the assessee was assessed to income-tax in the assessment years 1972-73 and 1975-76, the accounting years ending on the 31st may of the calendar years 1971 and 1974. .....
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