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I have a query on calculation of time limit u/s 147. It states "no action shall be taken u/s 147 after the expiry of four years from the end of the relevant assessment year...."
So, for Previous year 2005-06, the relevant Assessment year is 2006-07. What is the time limit with which action u/s 147 can be taken? Is it Assessment year 2010-11 or 2011-12? If it is 2011-12, then please clarify also.

Thank you Sir for the reply.

I have searched for the same even on this site but couldnot found the same.
Could you please share some sites where case laws can be found?
Thanks and regards
Sujit Talukder

Can someone please provide the case law gandhi trading Vs Asst. comm. of income tax on Sec 281B?
Regards
Sujit Talukder

Dear npmajithia1,

I am really thankful to you for the hard work that you are putting to solve the case.
Due to some work and time constraint adn busy in Tax audit and ITR filing work I could not work on the subject more but will post my findings here later on if found anything.
Once again, thank for putting the hard work.

Aslo thanks to preetyparik for the reply.

Regards
Sujit Talukder

Thanks dear for such elaborative reply.
As you said, for interest , Loan is a pre-condition. I also agreed but the confusion is the last line of the definition as quoted earlier "in respect of any credit facility which has not been utilized" which is creating confusion.
Let me check the case you mentioned.

[Facts]

Facts:

A Ltd is the owner of Land and has entered into Joint Development agreement with B Ltd.  B Ltd will the construct the property on the land and 40% of the constructed property will be allocated to the A Ltd and remaining 60% will be allocated to B Ltd.

One of the terms of the agreement provides that if B Ltd fails to complete  the construction within 26 months, B Ltd will pay compensation Rs 5,00,000/- for each month of delay to A Ltd.

B Ltd fails to complete the construction with in the time and now paying Rs 5,00,000/- to A Ltd.

My query is:
Whether the compensation so paid by B Ltd is subject to deduction of tax (TDS) and if yes, under which section?

My view:
I am of the opinion that the same is subject to TDS under section 194A – Interest other than interest on securities.

Sec 2 (28A) defines  "interest" means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilized.

The importance is going to the last line of the definition which says "in respect of any credit facility which has not been utilized". Whether the said 26 months amounts to credit facility or not that's the confusion to me. Credit facility normally means the period within which the service has to be delivered after which the payer has to compensate for the monetary loss due to loss suffered by the other party.
But I am getting any sufficient case laws or other grounds to support my views. Whether the "credit facility" is applicable only where monetary issue is involved or it is applicable to construction also where no direct monetary issue is there as given in the situation cited above.

That's why I am seeking esteemed members opinion in the matter.

Reasonable reply with proper grounds and explanation is solicited.

Dear Members,
Where can I get a copy of CBDT Instruction No. 1671?
On incometax website, circulars and notifications are given but not the instructions.
If any member can provide a copy, it will also be useful to me.
Regards
Sujit Talukder

Thank you tax_counsel  for the case law.
regards

Dear Members,
Could anyone please provide case law for the following case:
SANCHETI LEASING COMPANY LTD. v. INCOME-TAX OFFICER & ANR. (C. BALAN v. ITO.)

Thanking you,
regards
Sujit Talukder