TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>ITAT Ahmedabad-C: Tax Deduction Ruling - Calculating Assessed Tax based on TDS, Not Tax Actually Deducted</h1> <h3>ASSISTANT COMMISSIONER OF INCOME TAX. Versus BELUR INVESTMENTS P. LTD.</h3> The Appellate Tribunal ITAT Ahmedabad-C ruled in favor of the assessee in a case concerning the interpretation of provisions of s. 194A on tax deduction ... - Issues:1. Interpretation of provisions of s. 194A regarding tax deduction on interest income.2. Determination of assessed tax under s. 215 considering tax deductible at source.3. Conflict between decisions of Madras High Court and Calcutta High Court on the interpretation of s. 215.Analysis:The appeals before the Appellate Tribunal ITAT Ahmedabad-C revolve around the interpretation of the provisions of s. 194A concerning the tax deduction on interest income. The primary issue raised is regarding the treatment of the assessee's claim that no interest under s. 215 was payable. The Asstt. CIT contended that the amount of tax deducted at source, not tax deductible at source, should be considered while computing the 'assessed tax' under s. 215. However, the CIT(A) directed the Asstt. CIT to calculate the tax deductible at source on the interest income and give due credit for the same to determine the 'assessed tax' in compliance with the Tribunal's order.A crucial aspect of the dispute was the conflicting decisions of the Madras High Court and the Calcutta High Court on the interpretation of s. 215. The Madras High Court emphasized that the 'assessed tax' should be understood as the tax finally assessed reduced by the amount of tax deductible under s. 194A, not the tax actually deducted at source. The Court highlighted the distinction between 'deductible' and 'deducted' in s. 215(5) and reasoned that interest should be levied based on the difference between the assessed tax and the advance tax paid, considering the tax deductible at source. In contrast, the Calcutta High Court held a different view in a similar case.In light of the conflicting decisions, the Tribunal at Ahmedabad chose to follow the consistent precedent set by the Madras High Court and previous Tribunal decisions aligning with it. The Tribunal emphasized the importance of uniformity in decision-making and upheld the decision in favor of the assessee, rejecting the grounds raised by the Revenue. Consequently, the appeals were dismissed based on the interpretation of s. 215 and the precedent established by the Madras High Court.
TaxTMI 
TaxTMI 
