Case Law Details
Case Name : Housing and Urban Dev Corp Ltd. Vs JCIT (Supreme Court of India)
Related Assessment Year :
Courts :
Supreme Court of India
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Housing and Urban Dev Corp Ltd. Vs JCIT (Supreme Court of India)- On submission of counsel that assessee intend to make application before CBDT, the SC permitted assessee to make a representation to the CBDT, within fifteen days under s 119(2) either for the waiver of interest or to condone the delay in filing the rectification application under s 154 on account of a mistake, the interest income was offered to tax and the tax was also paid on it.
Housing and Urban Dev Corp Lt
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It is not understood how this case has gone up to supreme court. When an income is offered erroneously how int. can be demanded while the income itself can not be taxed. If an order is passed erroneously and extra refund is granted with interest, the Department will definitely collect back not only the excess refund but also the interest. The same analogy applies to this case also!
If it implies to the interest earned from the funds recieved on account of retirement from bank.
From the naration it is one’s reasonable inference that, before reaching the SC, there must have been a clear finding of fact, given by the lower authorities, including at the ITAT, to the effect that the assessee had committed a gross mistake in overstating lawfully chargeable income and overpaying tax.If that be so,is it not a fit case for the AO, or in appeal, for vhaving rectified the apparent mistake, by condoning the delay?Is it not within the inherent discretion of AO, or the others to have done so do so, to meet the ends of thye socalled – ‘natural justice’. Now. in view what ther SC has said, it is likely that, it may give rise to another round/spate of litigation, in the event ‘lady-luck’ decides to bless it with a favourable smile.