TaxTMI 
TaxTMI 
2007 (8) TMI 268
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....the case, the learned Income-tax Appellate Tribunal was justified in deleting the addition of Rs. 7,08,184 which had been rightly sustained by the Commissioner of Income-tax (Appeals) as benefit gained by the assessee within the meaning of section 28(iv) of the Income-tax Act, 1961? (2) Whether, on the facts and circumstances of the case, the learned Income-tax Appellate Tribunal was justified in holding that while giving appeal effect, the Assessing Officer could not charged interest under section 220(2) from the due date of original assessment/demand notice?" Sub-section (4) of section 260A of the Act provides that the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, ....
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....ccrues to the assessee, such income cannot be added in the hands of the assessee only on the basis of book entry. He submitted that in any case, the findings of the Tribunal on this question are based on facts and no question of law as such arose for decision. The findings of the Tribunal on this question are in paragraph 6 of the impugned order of the Tribunal, which are quoted hereinbelow: "On consideration of the above facts and rival submissions, we are of the view that the addition is unjustified in the matter. The assessee in the paper book has filed copies of the seized papers in which mere calculation of interest is shown. The explanation of the assessee was called for and the assessee submitted a certificate from M/s. Siddhar....
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....s below were not justified in making addition against the assessee. On the same set of facts, the additions have been made in the case of M/s. Ashirwad Ginning Factory and M/s. Ganpatlal Pannalal. The Commissioner of Income-tax (Appeals) on the basis of the certificate of the concerned parties explaining that no interest has been charged deleted the additions. The Revenue preferred appeals before the Tribunal and the Appellate Tribunal vide separate orders dismissed the appeals of the Revenue in IT(SS)A Nos. 56/Ind/04 and 57/Ind/04. Copies are filed in the paper book. The above facts clearly proved that the Assessing Officer was not justified in making the addition. We, accordingly, set aside the orders of the authorities below and delete t....
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....imple interest at the rate specified therein for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) of section 220 and ending with the day on which the amount is paid. Hence, the Assessing Officer was entitled to demand interest from the end of the period mentioned in sub-section (1) of section 220 till the day the amount is paid. Mr. Nema, on the other hand, referred to the proviso to sub-section (2) of section 220 of the Act and submitted that where as a result of an appellate order, the amount on which interest was payable under this section is reduced, the interest shall be reduced accordingly and the excess interest paid, if any, sha....