TaxTMI 
TaxTMI 
2002 (7) TMI 70
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.... 1961. Since common questions are involved in these three appeals, therefore, we dispose of all these three appeals by this common order. The assessee-respondent imported news prints, on which customs duty was payable. The assessee-respondent disputed the rate of customs duty before the Supreme Court and made a request for interim ex parte stay order on payment of customs duty. The Supreme Court vide its order dated April 8, 1982, granted stay on the condition of giving an unqualified and categorical bank guarantee for the amount of customs duty payable by the assessee. In pursuance of the direction of the Supreme Court, the assessee furnished a bank guarantee for the amount in dispute and claimed deduction of that customs duty liabil....
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.... the Income-tax Act, 1961, reads as under: "147. Income escaping assessment. -If the Assessing Officer, has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an assessment under sub-sect....
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....liability on the basis of furnishing bank guarantee as per the direction of the Supreme Court and that has been allowed accepting the assessee's claim in the original assessment, in our view to relook the same material and change the opinion, the Assessing Officer cannot reopen the assessment, if the notices have not been issued within four years from the end of the relevant assessment year. In the case in hand for the assessment year 1984-85 notice under section 148 has been issued on January 19, 1991, and for 1985-86 again notice under section 148 has been issued on January 17, 1991, i.e., after four years from the end of the relevant assessment year. These facts are not in dispute. When the notice has been issued after four years afte....
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....t of the provision of section 43B reads under: "43B. Certain deductions to be only on actual payment. -Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of (a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, or (c) any sum referred to in clause (ii) of sub-section (1) of section 36, or (d) any sum payable by the assessee as interest on any loan or borrowing from any public financi....
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....s. 50,000, no appeal should be filed. He also brought to our notice a latest decision of the apex court in the case of Tamil Nadu Industrial Investment Corporation Ltd. v. CIT [1999] 237 ITR 889, wherein their Lordships have taken the view that in fact the circular clarifies the way in which these amounts are to be treated under the accounting practice followed by the lender. The circular, therefore, cannot be treated as contrary to section 145 of the Income-tax Act or illegal in any form. It is meant for a uniform administration of law by all the income-tax authorities in a specific situation and is, therefore, validly issued under section 119 of the Income-tax Act. As such the circular would be binding on the Department. Mr. Mathur, le....