1985 (12) TMI 91

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....Income-tax Act, 1961 ('the Act') against the order dated 16-12-1983 passed by the Commissioner (Appeals). The order of the Commissioner (Appeals) relates to the order dated 2-3-1982 of the ITO purported to have been passed under section 195(2) of the Act. The grounds of appeal taken in this appeal are reproduced below: 1. That on the facts and in the circumstances of the case the learned Commis....

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....s hereinabove before or at the hearing of the appeal. 2. At the time of hearing of this appeal we went through the order dated 2-3-1982 of the ITO and the order dated 16-12-1983 of the Commissioner (Appeals). We have also gone through the grounds of appeal taken before us We find that section 248 allows a person to file an appeal if he denies his liability to make such deduction as is directed ....

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.... to tax. We do not find therein any reference to the rate of tax that has to be applied to the chargeable amount. In other words, section 195(2) relates to the proportion of the amount that can be chargeable to tax under the Act. The said provisions do not speak at all about the rate of tax that has to be applied to the appropriate proportion of the aforesaid sum held to be chargeable to tax. 3....

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....e of tax did not come under the purview of section 195 and so the order dated 2-3-1982 purported to be passed under section 195(2) was misconceived and so is non est in the eye of law. He replied that he had not looked at the matter from that angle and so he could not reply. It is evident from what is stated above that the assessee moved the ITO under section 195(2) regarding a matter to which the....