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income-tax Officer Vs. National Organic Chemical Industries Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtMumbai High Court
Decided On
Case NumberIT APPEAL NOS. 1946, 1947 AND 3994 (BOM.) OF 1983 [ASSESSMENT YEARS 1972-73, 1973-74 AND 1978-79]
Reported in[1984]10ITD398(Mum); (1985)22TTJ(Mumbai)494
Appellantincome-tax Officer
RespondentNational Organic Chemical Industries Ltd.
Excerpt:
- code of criminal procedure, 1973 [c.a. no. 2/1974]. section 41: [ swatanter kumar, cj, smt ranjana desai & d.b. bhosale, jj] arrest of accused - held, a police officer or a person empowered to arrest may arrest a person without intervention of the court subject to the limitations specified under the provisions of the code. the provisions of section 41 of the code provides for arrest by a police officer without an order from a magistrate and without a warrant. a distinct and different power under section 44 of the code empowers the magistrate to arrest or order any person to arrest the offender. under section 44 of the code, that power is vested in the court of the magistrate when an offence is committed in his presence. if the legislature has taken care of providing such specific power..........quantum of the penal interest, then it is not permissible to him to go in appeal to the appellate assistant commissioner under section 246(c) (as it then stood) but if the assessee denies the very liability to be charged with penal interest, then it is permissible to him to go in appeal to the appellate assistant commissioner under section 246(c) and when such an appeal has been filed, it will be open to the appellate assistant commissioner to take into account all points which may ligitimately reduce the taxable income or the tax to be paid but also substantially reduce the quantum of the penal interest. application :section 215 is inoperative now.income tax act 1961 s.215income tax act 1961 s.246depreciation--building--roads.ratio :roads in factory premises are building and not.....
Judgment:
ORDER

, ADMISSIBILITY--Interest under s. 215.

Ratio :

Levy of interest under section 215 can be appealed against only if the assessee denies his liability of penal interest, not in a case where he mere disputes the quantum of interest.

Held :

If an assessee challenges only the quantum of the penal interest, then it is not permissible to him to go in appeal to the Appellate Assistant Commissioner under section 246(c) (as it then stood) but if the assessee denies the very liability to be charged with penal interest, then it is permissible to him to go in appeal to the Appellate Assistant Commissioner under section 246(c) and when such an appeal has been filed, it will be open to the Appellate Assistant Commissioner to take into account all points which may ligitimately reduce the taxable income or the tax to be paid but also substantially reduce the quantum of the penal interest.

Application :

Section 215 is inoperative now.

Income Tax Act 1961 s.215

Income Tax Act 1961 s.246

Depreciation--BUILDING--Roads.

Ratio :

Roads in factory premises are building and not 'plant' for the purpose of depreciation.

Held :

As roads played no part in production as defined in section 43(3), and because they are adjuncts to factory buildings, they are to be treated as `building' for depreciation.

Application :

Also to current assessment years.

Income Tax Act 1961 s.32

Income Tax Act 1961 s.43(3)


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