TaxTMI 
TaxTMI 
2011 (5) TMI 826
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.... there was no need for furnishing reasons for reopening of the case in spite of the appellant's specific request to that effect. 2. For that the compensatory non-statutory interest received by the appellant in terms of the order of the hon'ble Calcutta High Court was a capital receipt in nature and the authorities below should have not imposed tax on such capital receipt. 3. For that the officers of the Department should not have taken advantage of the appellant's ignorance and the Central Board of Direct Tax's Circular No. 14(XL-35), dated April 11, 1955 is binding on the Assessing Officer. 4. For that without prejudice to ground No. 2 above, the appellant's claim of splitting up interest should....
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....tition No. 2928 West Bengal. The assessee did not file any return under section 139(1) till March 31, 2006. Since the assessee received Rs. 10,092,796 which is inclusive of interest and TDS was made against this payment. The Assessing Officer noticed that the income has escaped assessment for the assessment year 2005-06. Under the circumstances the Assessing Officer issued notice under section 148 of the Act. The assessee filed the return showing income of Rs. 6,19,392 along with statement of taxable income of different years and the assessee also claimed for relief under section 89(1) of the Act. In the assessment proceedings after giving opportunity to the assessee to attend the hearing the Assessing Officer recomputed the taxable income ....
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....uced in the appellate proceedings. It is submitted that the powers of the Commissioner of Income-tax (Appeals) are coterminous with the powers of the Assessing Officer. For this proposition, he relied on the following judgments : (a) CIT v. Kanpur Coal Syndicate [1964] 53 ITR 225 (SC), and (b) Jute Corpn. of India Ltd. v. CIT [1991] 187 ITR 688/[1990] 53 Taxman 85 (SC) 6. It is also submitted that it is a well settled law that no tax can be imposed without the authority of law if a tax cannot be imposed, the same cannot be collected merely because the assessee has paid the same. It is submitted that it is unconstitutional to collect tax without authority of law. He referred to article 265 which states that "No tax shall....
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....rials available on record. The moot question arising out of this appeal is whether the income determined by the Assessing Officer on the basis of the return filed by the assessee can be a figure lower than the income returned by the assessee. It is a well settled that the principle for determining the taxable income of the assessee under the Income-tax Act should be within the purview of the law in force. If the taxable income determined by the Assessing Officer is not in accordance with such principle it is open to the assessee to contend the same before the higher authorities to follow the correct application of law to determine the actual taxable income of the assessee. In our considered view, the lower authorities, are not expected, to ....