2007 (1) TMI 70

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uld be taken together for determining whether the amount of expenditure admissible under rule 6D has been exceeded or not? 2. Whether the Tribunal is right in law in holding that the interest u/s 215 of the I.T. Act, 1961 cannot be charged without proper direction in the body of assessment order when the charging of interest u/s is mandatory?" 2. We have heard Shri Sanjiv Bansal, learned counsel for the Revenue and Shri S.K.Mukhi, learned counsel for the assessee. Question No.1 3. At the very outset, learned counsel for the assessee submitted that the Tribunal while accepting the appeal of the assessee for the year in question had referred to the order of determination of the disallowance under this head for the assessment year ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d counsel for the revenue is that the Tribunal had gone wrong in deleting the interest charged under Section 215 of the Act. The Tribunal while accepting the plea of the assessee held that calculation of interest by same official was not in conformity with law and not to be treated as part of the assessment order. In response thereto, learned counsel for the assessee submitted that the question has become academic at present as in view of the final assessment framed, the amount of advance tax paid by the assessee had been found to be more than the tax payable at the time of assessment. Accordingly, there would be no question of levy of interest at all. Since these facts are not born out of the material on record in the paper-book, we refrai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 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 is mostly arithmetical but generally time consuming. If, therefore, the Income-tax Officer first draws up an order assessing the total income and, indicating the adjustments to be made, directs the office to compute the tax payable on that basis and then approves of it, either immediately or some time later, no fault can be found with the process, though it is only when both the computation sheets are signed or ini....