Icec India (P.) Ltd. vs Commissioner of Income Tax

After hearing learned counsel for the parties, we frame the following substantial question of law for our consideration:

Whether the assessing officer could have charged interest on the taxable income of the assessed under the provisions of Section 234B of the "Income Tax Act, 1961 without any specific order to this effect and in spite of the existence of ITNS 50?

If the answer to question No. 1 is in the affirmative, whether the interest u/s 234B of the Income Tax Act, 1961 has to be charged on the assessed income or the returned income of the assessed?

Insofar as the third question of law that has been raised by the assessed is concerned, we find that on the facts of the case all the authorities have found against the assessed and have come to the conclusion that the assessed did not carry on any activity which would warrant a claim of deduction u/s 80-O of the Act.

We have gone through the agreement dated 1-5-1992 between the assessed and its agent in India and we find that the agent is only an exclusive agent of the assessed for the sale of its products in India. Apart from this activity, the agent is required to obtain some information of the competitor''s activities and convey it to the ICEC. This can hardly qualify for the benefit of Section 80-O of the Act.

We are of the view that no substantial question of law arises for our consideration with regard to Section 80-O of the Act.

To this extent, the appeal is dismissed.