Law:

Section:

Section 28 (i) of the Income-tax Act, 1961 - Business income - Chargeable as - Assessment years 1993-94 to 1996-97 - Assessee was engaged in business of manufacture and export of garments - During relevant assessment years, it filed nil returns by claiming deduction under sections 80HHC and 80-IA - Assessing Officer disallowed assessee's claim that interest income from bank deposits should be assessed as business income - He assessed such interest under head 'Income from other sources' and, consequently, deductions under sections 80HHC and 80-IA were also disallowed thereon - He charged income-tax on such income and also levied interest under section 234B - Whether in view of decision of Supreme Court in case of Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 72 / 93 Taxman 502, interest income received by assessee on bank deposits was to be treated as income from other sources for assessment years 1993-94 to 1995-96 and as business income for assessment year 1996-97 - Held, yes Section 234B of the Income-tax Act, 1961 - Interest, chargeable as - Assessment years 1993-94 to 1996-97 - On facts stated under heading 'Business income -Chargeable as', Assessing Officer levied interest under section 234B upon assessee - Assessee filed petition for waiver of interest contending that for purpose of advance tax, interest income from bank deposits was not taken into account on bona fide belief that same was assessable as business income and would qualify for relief under sections 80HHC and 80-IA and, hence, not chargeable to tax - For that purpose, assessee relied upon Notification No. 400/234/IT(B), dated 23-5-1996 - Chief Commissioner dismissed waiver petition - Whether there is any provision for waiver of interest in notification relied upon by assessee - Held, no - Whether for assessment years 1993-94 to 1995-96, there was no scope for interference in order of Chief Commissioner as no infirmity was found and, therefore, order was to be upheld - Held, yes - Whether for assessment year 1996-97, order of Chief Commissioner was to be set aside and matter was to be remitted back to him for fresh consideration - Held, yes Circulars &…

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