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The Tax PublishersI.T.A. Nos. 3192 & 3508/Mum/2013
2019 TaxPub(DT) 7621 (Mum-Trib)INCOME TAX ACT, 1961
Section 143(3)
Interest was paid to and received from the same party, i.e., Government of India and therefore, both transactions should have been taken together and in permitting such exercise, there could be violation of any provisions of the Act.
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Assessment - Disallowance - Assessee seeking to set-off interest paid on income tax demands with interest received from department -
Assessee received interest from income-tax department to the tune of Rs. 43 crores and also paid interest to income-tax department on its tax demands to the tune of Rs. 6 crores. Assessee sought to set-off interest paid on income tax demands with interest received from income-tax department in return of income. AO denied this.Held: Interest was paid to and received from the same party, i.e., Government of India and therefore, both transactions should have been taken together and in permitting such exercise, there could be violation of any provisions of the Act.
Followed:DIT (International Taxation) v. Bank of America NT and SA in ITA No. 177 of 2012, dated 3-7-2014.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
INCOME TAX ACT, 1961
Section 14A Rule 8D(2)
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