The Commissioner of Income, Coimbatore v. Pricot Meridian Ltd
|The Commissioner of Income, Coimbatore
|Pricot Meridian Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|charging of interest • fresh assessment • monetary limit • demand notice • tax effect • due date
|Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that for charging of interest under the provisions of Section 220(2) the period for reckoning of interest has to be taken from the date of passing of the fresh assessment order 2. Whether based on material available before it, the Income Tax Appellate Tribunal was right in law in not accepting the fact that where the assessment made originally by the assessing officer is either varied or even set aside by the appellate authority but on further appeal, the original order is restored either in part or in full, interest is payable under Section 220(2) is required to be computed with reference to the due date reckoned from the original demand notice and the quantum of which the tax is payable is to be reckoned with reference to the tax finally determined 3. Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in not considering the circular issued by the Central Board of Direct Taxes with reference to charging of interest under Section 220(2) where assessment is set aside / cancelled and determined through an order giving effect to the appellate order 2. In Order in TCA No.820 of 2013 dated 04.06.2020 of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue is dismissed as not pressed, keeping open the substantial questions of law for determination in an appropriate case.