TaxTMI 
TaxTMI 
TaxTMI 
2022 (9) TMI 409
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.... 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2008-09. 2. The brief facts of the case is that the assessee is in the business of processing of Milk & Diary products and manufacturing of Cattle Feed. For the Assessment Year 2008-09, the assessee filed its Return of Income on 29/09/2008 declaring total income of Rs. 1,72,13,825/- before claiming deduction u/s. 80P. The case was selected for scrutiny assessment. On verification of records, it was noticed by the assessing officer that several appeal effects were given especially for the Assessment Years 2001- 02 and 2002-03, the assessee was granted interest u/s. 244A of the Act along with such refunds. For the Assessment Year, 2001-02 Refund of Rs.1,65,00,....
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....ing Officer is not correcting including this amount for the assessment year 2008-09. However during the assessment proceedings after the issuance of the show cause notice, the assessee has offered this interest income of Rs.30,49,742/- for the assessment year 2011-12 and filed a revised return on 26.09.2012. It is therefore requested not to make any addition on this account. The assessing officer has rejected the above claim and held that intimation u/s. 245 was being sent to the assessee before making such an adjustment. However the assessee has not offered the same as the income of the assessee for the relevant assessment year 2008-09 and therefore added as the income relevant to the Assessment Year 2008-09 and demanded tax thereon. 3. A....
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....1 relied on." The chargeability of an income which has accrued cannot depend on the knowledge of the assessee, whatever be the circumstances. We are not on the mens rea, which can be the issue in penalty proceedings and whether the assessee is responsible for understatement of income. Once the income is proved to belong to the year in question, it has to be added as part of the total income. Here, I would like to refer to the decision of Mumbai ITAT, Special Bench in the case of Avada Trading Co., 100 ITD 131. In this case, it was decided that once a refund is granted to an assessee along with interest, the interest income accrues to the assessee even if the determination of interest has not become final. Therefore, the action of the AO o....
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.... of the I.T. Act, 1961. Please refer to the above 2. A demand of Rs. 1,60,38,262 & 2,70,558 & 2,41,180 is outstanding in your case for the assessment year 2000-01, 1998-99 & 2005-06 and refund of Rs. 1,65,50,000 has arisen as a result of processing for A.Y. 2001-02. I propose to adjust the refund against outstanding demand for the aforesaid year. Please treat this as intimation u/s. 245 of the I.T.Act. Yours faithfully, (T.D. Shivnani) Asst. Commissioner of Income-tax, Mehsana Circle, Mehsana. 4.2. The Ld. Counsel further submitted that the copy of the intimation itself is not eligible. The amount shown in this order does not disclose whether it is a refund alone and interest also included in that amount. In the absence of the same....
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....rference and pleaded to uphold the penalty levied by the lower authorities. 6. We have heard both the sides and perused the materials available on record but including the Paper Book filed by the assessee. The short issue is to be decided in this case is whether assessee has been informed by the Assessing Officer while granting refund u/s. 245, the break-up of the details of the refund and interest determined u/s. 244A of the Act and how the same have been adjusted against the outstanding demand in assessee's case. 6.1. As it can be seen from Para 4.1 of this order, the intimation made u/s. 245 of the Act. This intimation states there are some tax arrears are due from the assessee relating to three assessment years. However, Rs. 1,65,50,0....
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....riting to such assessee of the action proposed to be taken under this section. Similarly sub-section (3) of Section 244A reads as follows; "Provides as a result of an order passed by an Appellate Authority the amount on which interest was payable under sub-section (1) has been increased or reduced as the case may be the interest shall be increased or reduced accordingly. By intimating to the assessee." 6.3. It is seen on record that the Assessing Officer has not intimated what is the interest determined u/s. 244A of the Act relevant to the Assessment Year 2001-02. Similarly for the Assessment Year 2002-03 only during the assessment proceedings for the Assessment Year 2008-09 this break up was shown to the assessee by way of a show cause ....