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 Kolkata
Reported in : (1989)29ITD293(Kol.)
..... while filing the return of income for the assessment year 1974-75 on 31-7-1974, the assessee in the statement of details of interest received showed this amount as under : interest under section 214 allowed in asst. ..... 1,14,212 either on the ground that it was not assessable being an interest received from the income-tax department or on the ground that the interest having accrued in february 1972 at the time of passing of the assessment order for the assessment year 1967-68, that admittedly the interest payable to the assessee-company for the assessment year 1967-68 became payable in february 1972 and so it was assessable in the assessment year 1972-73. ..... 1,14,212 became the income of the assessee.admittedly, the amount of interest under section 214 related to the assessment year 1967-68, the assessment of which was made on 25-2-1972.the assessee's accounting year ends on 31st march every year. ..... 1,14,212 is not assessable to tax for the assessment year 1974-75 is not acceptable, as the interest arose in the financial year 1973-74 and as such it is assessable in the assessment year 1974-75. ..... 1,14,212 would have escaped assessment altogether. ..... 1,14,212 to arrive at the returned income and that the assessee was, therefore, liable to penalty under section 271(1)(c) of the income-tax act, 1961. ..... (ii) if the return filed by the assessee was accepted without any examination or scrutiny the assessee could have escaped the tax on the income of rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)48ITD109(Kol.)
..... reopening of the assessment proceedings for the assessment years 1973-74 and 1974-75 were on the basis of a mere change of opinion on the part of the wto.the assessee had duly shown the value of his interest in the firm m/s.durga trading corporation on the basis of valuation by an approved valuer which was duly accepted when the original assessment was made.there was no basis or material with the wto to hold that the provisions of section 17(1)(a) of the wealth-tax act, 1957 are ..... it may be mentioned and useful to reproduce the reasons for reopening the assessment proceedings under section 17{l)(a) of the wealth-tax act, 1957 recorded by the wto for the two assessment years as below: on perusal of records it appears that the shares of partnership interest of the assessee in the value of house property owned by the firm m/s. ..... the assessing officer also should properly apply his mind to such material and he must draw an inference based on reason, that the wealth has escaped assessment. ..... on going through section 17(1) of the wealth-tax act, 1957, we find that the assessing officer must have "reason to believe that the net wealth chargeable to tax has escaped assessment" etc. ..... the wto, therefore, acted under a genuine belief that in the return of net wealth the assessee had not disclosed the true value of the property which had resulted in escapement of net wealth. ..... there has also to be a nexus between such material and formation: of belief of escapement of wealth. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)50ITD214(Kol.)
..... that calcutta high court has no occasion to discuss this matter in the context of interest chargeable under section 139(8) we noticed that while taking the definition of month' as calendar month for the purpose of penalty under section 271(1)(a) the calcutta high court has mentioned that this definition will apply to the term 'month' occurring in the income-tax act, 1961 unless there is something in the context which will exclude such application ..... scheme of imposition of penalty under section 271(1)(a) and scheme of levying interest under section 139(8) for the same default, is that while penalty is imposed @ 2% of assessed tax per month, the interest is levied @ 15% per annum on amount of tax payable.thus, there is nothing common between the scheme of penalty and the scheme of interest except the period of default which is reckoned from the day immediately following specified date to the date of furnishing of return or date of assessment under section 144 with only ..... . [1974] 97itr 285 wherein it was held that the word 'month' occurring in section 271 (1)(a) must be taken to mean a period of 30 ..... if the english calendar month is adopted, it may in some cases lead to a defaulting assessee escaping penalty altogether.8 ..... 811 dated 11-12-1974 issued by the central board of direct taxes, new delhi and submitted that according to the board's instruction actual date of filing the return, should also be included in computing the period for which the interest is chargeable under section 139(8) .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD1100(Kol.)
..... provisions of sub-section (1 a) of section 201, if any person, as is referred to in that sub-section, does not deduct or after deducting fails to pay tax as required under this act, he or it shall be liable to pay simple interest on the amount of such tax from the date on which such tax was deductible to the date on which such taxis actually paid.now, the question of computation of interest would come in only when the tax is actually ..... because the dates of actual payment had yet to be ascertained as argued by the assessee's representative himself.moreover, the interest is to be considered up to the date of payment and obviously the limitation prescribed by the section 231 cannot be applicable to the levy of interest under section 201(1 a), which only provides for the liability to pay interest, because the computation of interest could only be made after the tax itself had been deposited to the government's credit.10 ..... letter dated 1-7-1974, alleging that the obligation to deduct tax under section 195 of the act arose only at the time of payment and not at the time of credit of the interest. ..... . in such a case there would be no necessity of treating any body as an agent and making an assessment upon him.according to sub-section (2) of section 163 no person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the ito as to ..... bank is liable to be assessed as an agent of the non-residents and as such, applicability of section 195 to the assessee .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)2ITD149(Kol.)
..... , issued a show-cause notice as to why an order under section 263 of the income-tax act, 1961 ('the act'), as the circumstances justify including an order, or enhancing, or modifying the assessment order or cancelling the assessment and the making of the fresh assessment, be not made. ..... the application was served on the appellant calling upon him to show cause why penalty to the extent of 50 per cent and interest at 6 per cent per annum should not be imposed on him under section 4a of the 1923 act, on the amount of compensation payable by him because of the default in making the payment of the compensation. ..... delay, a further sum not exceeding fifty per cent of such amount shall be recovered from the employer by way of penalty.section 19(1) of the 1923 act lays down that if any question arises in any proceedings under the ..... be, without prejudice to the right of the workman to make any further claim (3) where any employer is in default in paying the compensation due under this act within one month from the date it fell due, the commissioner may direct that, in addition to the amount of the arrears, simple interest at the rate of 6 per cent per annum on the amount due together with, if in the opinion of the commissioner there is no justification for the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD160(Kol.)
..... v, calcutta, dated 20-3-1974 minimum penalty under section 271(1)(c) of the income-tax act, 1961 will be imposable at the rate of 20 per cent of the tax sought to be avoided, in terms and conditions for agreed assessments laid down in paragraph 8 of the aforesaid settlement.it is a fact that the iac before levying penalty did not give a hearing to the assessee.9. ..... of the facts which have transpired since the making of the promise, public interest would be prejudiced if the government were required to carry out the promise, the court would have to balance the public interest in the government carry out the promise made to a citizen which has induced the citizen to act upon it and alter his position and the public interest likely to suffer if the promise were required to be carried out by the government and ..... on 2-8-1962, the commissioner issued a notice to show cause to the assessee-respondent as to why the said assessments should not be cancelled under section 33b of the act as he felt that the completed assessments were erroneous as being prejudicial to the interests of the revenue and that the ito concerned had no territorial jurisdiction over the case. ..... 33,110) will be assessable in the following assessment years :------------------------------------------------------------------------------------assessment amount of interest total year loans------------------------------------------------------------------------------------ rs. rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD223(Kol.)
..... their lordships were no doubt considering the provisions of section 21(4) of the wealth-tax act but those provisions are analogous to the provisions under the income-tax act and they have full force at page 598 the dictum laid down can be better understood by quoting their lordships : ...the wealth-tax officer has to determine who are the beneficiaries in respect of the remainder on the relevant date and whether their ..... admission of the additional ground the scope of the appeal would get enlarged and the result may be that the assessment would be struck down and the revenue, who is the appellant, would be worse of than what it was before ..... the position has to be seen in the relevant valuation date as if the proceeding life interest had come to an end on that date and if, on that hypothesis, it is possible to determine who precisely would be the beneficiaries and on what determinate shares, sub-section (1) of section 21 must apply and it would be a matter of no consequence that the number of beneficiaries may vary in the future either by reason of some beneficiaries ceasing to exist or some ..... the applicability of sub-section (1) of section 21 to say that the beneficiaries are indeterminate and unknown because it cannot be predicted who would be the beneficiaries in respect of the remainder on the death of the owner of the life interest. ..... learned departmental representative pointing out clause 3(d) states that the interest of the beneficiary is only contingent upon happening of the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD1(Kol.)
..... section 80g of the income tax act, 1961 ("the act"), was claimed in respect thereof and allowed by the ito while completing the assessment under section 143(3), read with section 144b, of the act ..... to- (iv) any other fund or any institution to which this section applies ; or (5) this section applies to donation to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in india for a charitable purpose ..... section 6(1) of the act, it is clear that the primary or dominant purpose of an institution like the assessee-council is the advancement of the object of general public utility within the meaning of section 2(75) of the act, and as such the income from securities held by the assessee-council would be exempt from any tax liability under section 11 of the act ..... section 80g(2)(iv), section 80g(5)(ii) and explanation 3 to that section ..... "religious" are used in the income-tax act.moreover, explanation 3, in our view, does not ..... tax act where it was held that the expression ..... section ..... section, 'charitable purpose' does not include any purpose the whole or substantially the whole of which is of a religious ..... section 80g(5)(ii) read with explanation 3 and that the relief allowed under section 80g by the ito in respect of the donation to the trust ..... section 11 of the 1961 act up to and including the assessment year 1979-80 though it was stated that no certificate under section ..... assessment for the assessment year 1974 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD831(Kol.)
..... the assessee claimed exemption of capital gains as the assessee invested the entire sale proceeds of the investments, including capital gains, with mohini thapar charitable trust, calcutta, at interest and, therefore, satisfied the condition in section 11(1a)(a) of the income-tax act, 1961 ("the act"). ..... this is an appeal by karam chand thapar memorial charitable trust, calcutta, which is directed against the order of the commissioner (appeals) dated 23-5-1980 wherein he has sustained the assessment of capital gains arising on sale of shares and also the voluntary contributions received from mohini thapar charitable trust. ..... a copy of the assessment order for the assessment year 1972-73 of the said mohini thapar charitable trust was filed in the paper book which shows that exemption under section 11 was denied to it on the basis of the admission of the ground that the investment of the said trust with karamchand thapar & bros. (p ..... to him, the voluntary contributions received from mohini thapar charitable trust would be liable for assessment if the income of that trust was exempt under section 11 and not otherwise. ..... the ito has assessed such voluntary contributions on the ground that the exemption under section 11 was not available to the assessee-trust ..... , there is merit in the contention of the learned counsel for the assessee and, accordingly, we hold that the authorities were not justified in assessing the voluntary contributions received from mohini thapar charitable trust. .....
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