AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2017 (7) TMI 1249
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the facts and in the circumstances of the case the learned Tribunal was justified in holding the interest received at Rs. 13,20,900/- is not income from business and it is income from other sources and that lending of funds from assessee's business, is not part of business activity and therefore, ineligible for deduction under Section 80 HHC of the Income Tax Act, 1961 on such amount of interest? 2. Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in not deleting the interest u/s 234-B and interest u/s 234-C of the Income Tax Act when there was no specific directions to charge interest in the assessment order dated 31/12/1999? 3. Again further question was framed on 1st June, 2017. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding Corporation vs. Income Tax Officer decided on 23rd November, 2016, wherein speaking for the bench, this court observed as under:- "5. Counsel for the appellant contended that in view of the decision of Supreme Court in case of ACG Associated Capsules (P) Ltd. vs. Commissioner of Income Tax, Central-IV, Mumbai reported in (2012) 343 ITR 89 where in respect of quantum, the Supreme Court held as under: "1. Section 80HHC of the Income Tax Act, 1961- Deduction-Exporters-Assessment year 2003-04- Whether expression "included any such profit" in clause (baa) to section 80HHC would mean only such receipts by way of brokerage, commission, interest, rent, charges or any other receipt which are included in profits of business as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 9. Taking into consideration the contention which has been raised and the finding of the AO, we are of the opinion that in view of clause (baa) of Section 80 HHC, the assessee is entitled to get net income under Section 80 HHC. In that view of the matter, the issues No.1 to 3 all are answered in favour of the assessee and against the department. Since issues are No.1 to 3 are decided in favour of assessee, issues No. 4 and 5 being consequential, the counsel for the parties do not press these issues and issues No.4 & 5 are not pressed. 6. He has also relied upon three decisions of the Allahabad High Court in the case of Commissioner of Income Tax vs. Oswal Exports [2014] 369 ITR 630, Commissioner of Income Tax-UU, Kanpur vs. Deep A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er:- "9.Taking into consideration the observations made by the Supreme Court in case of Commissioner of Income Tax Delhi vs. Bhagat Construction Company (P) Ltd. reported in (2015) 60 taxmann. Com 334 (SC), while considering the earlier decision of the Supreme Court in para 8 & 9 observed as under:- "8. It will be seen that under the provisions of Section 234B, the moment an assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such an assessee is less than 90 percent of the assessed tax, the assessee becomes liable to pay simple interest at the rate of one per cent for every month or part of the month. Shri Guru Krishna is right in stating that levy of such interest....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntial only and only arithmetically amount of interest is required to be calculated, we are of the opinion that even in absence of any direction by the A.O. while passing assessment order under section 143(3) of the Income Tax Act, which according to under section only for determining assessed tax, there can be demand of levy and demand of interest under section 156 of the Income Tax Act. It would have been a different fact if the A.O. had any discretion with respect to rate of interest and/or to levy any interest considering the facts and circumstances of the case. As observed hereinabove, as such, A.O. had no such discretion and moment he determines the "assessed tax" and on the eventuality as mentioned in section 234B, i.e. (I) an assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e not in agreement with the contrary view taken than what we are taking in the present case. 7.16. Similarly, the submissions on behalf of the assessee that the decision of the Patna High Court in the case of Rachi Club Ltd. (supra) came to be merged in the decision of the Hon'ble Supreme Court in view of the dismissal of the SLP against the said decision of Patna High Court in the case of Rachi Club Ltd. (supra) and therefore, the said decision is binding to this court is concerned, it is required to be noted that subsequent decision of the Hon'ble Supreme Court in the case of Anjum M.H. Ghaswala (supra) is a decision of a bench consisting of Five Hon'ble Judges and in the sebsequent decision of the Hon'ble Supreme Court in the ca....