2013 (5) TMI 872

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....ross-appeal is pending on the orders of the CIT(A). Therefore, Revenue appeals are heard. 2. Common issue in both the appeals is about levy of interest under S.115P of the Act. Assessee public limited company set aside amount for declaration of dividend as on 31st of March of the relevant year. Consequent to finalisation of accounts and approval by the Board, the company declared final dividend and paid the necessary tax within 14 days of the said declaration/payment. It was the contention of the Assessing Officer that having provided for the amount on 31st March of every year, it is deemed to have been declared and assessee should have remitted tax by 14th of April and accordingly, he levied interest of Rs. 1,33,98,180 (without any discus....

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....body of the company. There is no merit in the action of AO in levying interest on notional basis. Revenue's grounds on this issue are accordingly rejected. 5. The other issue contested in Revenue's appeal in assessment year 2008-09 is on the deletion of disallowance made under S.40(a)(ia) of the Act. On the reason that the assessee was exporting the iron ore through MMTC, another government organisation and on the basis of statements of some personnel of MMTC, Assessing Officer estimated 2.8% of the sales declared by the MMTC as commission payable and since assessee has not deducted tax on the so called commission, Assessing Officer disallowed the quantified amount under S.40(a)(ia) of the Act. Consequent to the order of the ITAT, Visakhap....