Case Law Details
Case Name : Narad Investments & Trading Pvt. Ltd. Vs. DCIT (ITAT Mumbai)
Related Assessment Year : 1996- 97
Courts :
All ITAT ITAT Mumbai
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Narad Investments & Trading Pvt. Ltd. Vs. DCIT (ITAT Mumbai)
I.T.A. No. 3360/Mum/2010, dated 19.10.2011
In the case of assessee the original assessment was confirmed by the CIT (A) but on further appeal, the Tribunal set aside the order of the CIT(A) and the issue was restored back to the AO. In the fresh assessment, the AO repeated the addition raising the same demand but interest u/s. 220(2) was levied from the date of demand notice issued as per the original assessment order. The assessee disputed the AO’s action relying on the Board circular No. 334, dtd. 03.04.1982, and contende...
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This decision,
Narad Investments & Trading Pvt. Ltd. Vs. DCIT (ITAT Mumbai)
I.T.A. No.3360/Mum/2010, dtd. 19.10.2011,
involves action by three fact finding authorities viz. AO, CIT(A), and ITAT. It is clear that being embroiled in legalities, they have lost sight of the larger picture. IF the original assessment order and demand notice do not survice in this case, it has implication on two counts:-
(1) Interest u/s 234A, 234B, and 234C would be leviable till date of fresh assessment, and action under section 154 has to be invoked. The three authorities have omitted to comment on this aspect of chrgeabilitiy of interest under the other sections.
(2) Automatic corrollory of (1) above is that the date from which interest u/s 220(2) can be charged gets shifted to from 35 days from the date of serviceof fresh notice of demand.
There cannot be a situation where interest u/s 220(2) and u/s 234A, 234B, 234C are either not charged or not charged in aggregation on any amount of tax.
Clearly, now the AO has to take action u/s 154 in respect of (1) above.
This decision,
Narad Investments & Trading Pvt. Ltd. Vs. DCIT (ITAT Mumbai)
I.T.A. No.3360/Mum/2010, dtd. 19.10.2011,
involves action by three fact finding authorities viz. AO, CIT(A), and ITAT. It is clear that being embroiled in legalities, they have lost sight of the larger picture. IF the original assessment order and demand notice do not survice in this case, it has implication on two counts:-
(1) Interest u/s 234A, 234B, and 234C would be leviable till date of fresh assessment, and action under section 154 has to be invoked. The three authorities have omitted to comment on this aspect of chrgeabilitiy of interest under the other sections.
(2) Automatic corrollory of (1) above is that the date from which interest u/s 220(2) can be charged gets shifted to from 35 days from the date of serviceof fresh notice of demand.
There cannot be a situation where interest u/s 220(2) and u/s 234A, 234B, 234C are either not charged or not charged in aggregation on any amount of tax.
Clearly, now the AO has to take action u/s 154 in respect of (1) above.
This decision,
Narad Investments & Trading Pvt. Ltd. Vs. DCIT (ITAT Mumbai)
I.T.A. No.3360/Mum/2010, dtd. 19.10.2011,
involves action by three fact finding authorities viz. AO, CIT(A), and ITAT. It is clear that being embroiled in legalities, they have lost sight of the larger picture. IF the original assessment order and demand notice do not survice in this case, it has implication on two counts:-
(1) Interest u/s 234A, 234B, and 234C would be leviable till date of fresh assessment, and action under section 154 has to be invoked. The three authorities have omitted to comment on this aspect of chrgeabilitiy of interest under the other sections.
(2) Automatic corrollory of (1) above is that the date from which interest u/s 220(2) can be charged gets shifted to from 35 days from the date of serviceof fresh notice of demand.
There cannot be a situation where interest u/s 220(2) and u/s 234A, 234B, 234C are either not charged or not charged in aggregation on any amount of tax.
Clearly, now the AO has to take action u/s 154 in respect of (1) above.