TaxTMI 
TaxTMI 
2015 (1) TMI 1071
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....ction 12 is leviable even when no assessment under Section 8(2) or 8(3) was made prior to the issuance of notice under Section 10 of the Act and there being no default in compliance of the notice under Section 10 of the Act by the appellant? 2. The assessee is a private limited Company carrying on the business of money lending, corporate advisory services, internal audit services, handling agency services, etc., One of its sources of income was by way of earning interest. The assessee had not filed its return of income under the Interest Act, 1974 (hereinafter referred to as 'the Act') on the ground that it could not be treated as a loan Company or credit institution as defined in the Act. Consequently, it had not filed the return of cha....
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....terest Rs. 1,17,49,791/- Interest Tax thereon Rs. 2,34,996/- Add: Interest u/s. 12 Rs. 2,53,692/- 12A Rs. 3,19,586/- 12B Rs. - Net Payable Rs. 5,73,278/- Rs. 8,08,274/- Assessment year 1999-00 Net chargeable interest Rs. 99,79,487/- Interest Tax thereon Rs. 1,99,590/- Add: Interest u/s. 12 Rs. 1,63,590/- 12A Rs. 2,27,430/- 12B Rs. - Rs. 3,91,020/- Net Payable Rs. 5,90,610/- Assessment year 2000-01 Net chargeable interest Rs. 89,73,067/- Interest Tax thereon Rs. 1,79,461/- ....
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....default in furnishing return of chargeable interest.- (1) Where the return of chargeable interest for any assessment year under sub-section (1) of section 7, or in response to a notice under sub-section (2) of that section, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of two per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of the furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of assessment under sub-section (3) of section 8, on the amount of the interest-....
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.... month comprised in the period commencing on the date immediately following the expiry of time allowed as aforesaid, and,- (a) where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return; or (b) where no return has been furnished, ending on the day of completion of the reassessment under section 10, on the amount by which the interest-tax on the chargeable interest as determined on the basis of such reassessment exceeds the interest-tax on chargeable interest on the basis of earlier assessment aforesaid. (4) Where, as a result of an order under section 15 or section 17 of this Act or section 254 or section 260 or section 262 of the Income-tax Act, as applicable to this Act by....
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....e. If no such return is filed, the assessing officer is vested with the power under sub-section (2) of Section 7 to serve a notice on the assessee requiring him to furnish within 30 days from the date of service of the notice a return of the chargeable interest of the credit institution for the previous year in the prescribed form. Section 10 of the Act deals with a case where assessee has omitted or failed to make a return under Section 7 for any assessment year, the assessing officer may at any time serve on the assessee a notice containing all or any of the requirements which may be included in a notice under Section 7 and may proceed to assess and the provisions of the Act shall, so far as may be, apply, as if the notice were a notice i....