TaxTMI 
TaxTMI 
2002 (3) TMI 227
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rs. 45,875 in Unit-I and Rs. 20,799 in Unit-II are not being pressed. Hence these grounds are dismissed. 2. Ground No.4 is regarding confirmation of following disallowances out of the expenses of Unit-I: (a) Travelling Exp. : Rs. 3,500 (b) Donation : Rs. 4,601 (c) Car Exp. (1/5th sustained) : Rs. 5,259 (d) Car Depreciation (1/6th sustained) : Rs. 23,126 3. The Assessing Officer had made the following disallowances 3. The Assessing Officer had made the following disallowances: Disallowed Claimed (a) Travelling Exp. Rs. 4,500 Rs. 26,024 (b) Donation Rs. 4,601 Rs. 4,601 (c) Car Exp. (1/4th) Rs. 9,074 Rs. 26,297 (d) Depreciation on car Rs.28,908 Rs. 1,15,633 (1/4th) The Assessing Officer made the above disallowances for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nation has rightly been confirmed by CIT(A). As regards the car expenses and depreciation on car we find that the CIT(A) had already gone into the reasonableness of such disallowances. Therefore, we decline to interfere with the order of the C1T(A) on this score. 7. Ground No.5 is regarding confirmation of the following disallowances out of expenses of Unit-II: (a) Travelling Exp. Rs. 2,000 (b) Building Rs. 6,000 8. The Assessing Officer had made the following disallowances: Disallowed Claimed (a) Travelling exp. Rs. 3,000 Rs. 18,752 (b) Building exp. Rs.10,000 Rs. 69,208 The Assessing Officer made the above disallowances for personal and non business element involved. The CIT(A) had allowed the following reduction :- Travelling R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rding interest charged under sections 234B and 234C of the Income-tax Act. The Ld. A.R. submitted that the Assessing Officer was not justified in charging interest under sections 234B and 234C, as there was no specific direction in this respect in the assessment order. The assessment order simply mentions that charge interest as per rules. In these circumstances, the interest charged is bad in law and on facts. In this regard reliance was placed on the judgment of CIT v. Ranchi Club Ltd. [2001] 247 ITR 209 (SC). 15. The Ld. D.R. relied upon the judgment of Kalyankumar Ray v. CIT [1991] 191 ITR 634 (SC). The Ld. D.R. submitted that the provisions of sections 234B and 234C are not penal in nature. They are only compensatory. The CIT(A) has a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....allan" without mentioning the section under which it was to be charged but the demand notice was issued by the Assessing Officer on the same day simultaneously, the quantum of interest and the section under which it was charged, namely, 234B of the Act was mentioned. Dismissing the writ petition, the Hon'ble High-Court held that since the same officer had passed on the same day the assessment order and the demand notice specifying the quantum of interest charged under section 234B of the Act, the charge of interest was valid. The Ld. A.R. had relied upon the case of Ranchi Club Ltd. wherein the decision of their Lordships of the Hon'ble Patna High Court in Uday Mistanna Bhandar & Complex v. CIT[1996] 222 ITR 44 was affirmed. The test as lai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s to determine, by an order in writing, not only the total income but also the net sum which will be payable by the assessee for the assessment year in question and the demand notice has to be issued under section 156 of the Income-tax Act, 1961, in consequence of such an order. The statute does not however require that both the computations (i.e., of the total income as well as of the sum payable) should be done on the same sheet of paper, the sheet that is superscribed 'assessment order'. It does not prescribe any form for the purpose. Once the assessment of the total income is complete with indications of the deductions, rebates, reliefs, and adjustments available to the assessee, the calculation of the net tax payable is a process which....