ASSISTANT COMMISSIONER OF INCOME TAX Vs. BELUR INVESTMENTS P LTD
INCOME TAX APPELLATE TRIBUNAL
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B.L. CHHIBBER, A.M. : -
(1.) THE common ground raised in these four appeals by the Department reads as under : "THE learned CIT(A) has erred in law and on facts in directing to work out the tax deductible on interest only on the basis of the interest income offered for tax completely ignoring the provisions of S. 194A which says that tax is deductible only when interest income is credited or paid to the account of the assessee".
(2.) The basic issue raised in these appeals is in regard to treatment meted out by the Asstt. CIT to the assessees claim that no interest under S. 215 was payable. It is to be noted here that that impugned order was passed with a view to give effect to the order of the Tribunal directing that chargeability of interest under S. 215 is to be determined after allowing credit for tax deductible at source for the purpose of quantifying the "assessed tax" in terms of sub-s. (5) of S. 215 of the Act.
The learned Asstt. CIT held that it is the amount of tax deducted at source and not tax deductible at source which is to be taken into consideration while computing the "assessed tax".
(3.) ON appeal, the learned CIT(A) relying upon the case of M/s. Berar Investments Pvt. Ltd. (IVL), an assessee belonging to the group to which the assessee in the instant case belongs, directed the Asstt. CIT to work out the amount of tax deductible at source on the amount of interest income included in the total income and to give due credit for the same for the purpose of working out the "assessed tax" as defined under sub-s. (5) of S. 215 of the Act in compliance with the order of the Tribunal.;
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