GRINDLAYS BANK LTD Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF CALCUTTA
GRINDLAYS BANK LTD.
COMMISSIONER OF INCOME-TAX
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Suhas Chandra Sen, J. -
(1.) The assessment year involved in this case is 1973-74 for which the previous year ended on March 31, 1973. In the year under consideration M/s. Rallis International Ltd., a non-resident company, held 25,000 shares of its subsidiary company known as Oriental Carpet Manufacturers (India) Pvt. Ltd., Amritsar. It appears that some time prior to December 29, 1970, M/s. Rallis International Ltd. decided to sell the said shares. For the said sale M/s. Grindlays Bank Ltd. acted as an agent on behalf of M/s. Rallis International Ltd. The ITO passed an order dated March 29, 1974, under Section 163(1)(c) of the Act declaring the assessee as an agent of the said non-resident company, M/s. Rallis International Ltd.
(2.) The assessee challenged the said assessment of the ITO before the AAC and one of the grounds raised therein was that interest under Section 1 39(8) of the Act should not have been charged. The AAC set aside the order of the ITO in the matter of charging of interest under Section 139(8) of the Act and remanded the case to the ITO for consideration by him of all the facts and circumstances of the case and to decide afresh whether interest should be charged or whether it should be waived or it should be reduced as provided under the I.T. Rules. The Revenue appealed to the Tribunal. Before the Tribunal it was contended on behalf of the Revenue that the appeal by the assessee against the charging of interest Under Section 139(8) of the Act was not competent. Secondly, it was urged that the AAC erred in setting aside the order of the ITO charging interest under Section 139(8).
(3.) On the first point the Tribunal held that the AAC was justified in entertaining the appeal.;
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