COMMISSIONER OF INCOM TAX Vs. CANFIN HOMES LTD

JUDGEMENT

(1.) THESE appeals are heard and disposed of together, as they pertain to the same assessee - except that they are in respect of two different but consecutive assessment years namely 1996-97 and 1997-98, respectively. The controversy and the questions of law involved are identical.

(2.) THE assessee is a financial institution. The assessee had filed its return of Income under the provisions of the Interest Tax Act, 1974 (Hereinafter referred to as 'the Act' for brevity ). The assessment in respect of the year 1996-97 was completed by order dated 19-3-1999. The chargeable intrest declared was accepted.

(3.) HOWEVER, the Commissioner of Income tax, in exercise of power under Section 19 of the Act, proceeded to hold, after hearing the assessee, by an order dated 17-8-2000 that a sum of Rs. 2,09,40,087/- additional interest collected by the assessee from it's customers in respect of loans advanced, was also subject-matter of levy under the Act. It was further held that as per Schedule 11 of the printed accounts of the assessee for the year ended 31-3-1996, a sum of Rs. 3,76,41,023/- was shown but the same was not examined by the assessing Officer. And accordingly he was directed to examine whether it would be chargeable as per the provisions of the Act after giving an opportunity to the assessee. The assessee had preferred an appeal to the income Tax Appellate Tribunal against the above order. The Tribunal having allowed the appeal, the Revenue has preferred the appeal in I. T. A. No. 125/2003.