9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 1253 - HC - Income TaxInterest u/s 234(B) and 234(D) levied by AO u/s.154 - Held that - Demand of interest under section 234(B) was set aside by the learned CIT(A) vide order dated 28/11/2002. It is an admitted position that thereafter the matter was not carried to appeal by the revenue against the order passed by the learned CIT(A) dated 28/11/2002 setting aside demand of interest under section 234(B) of the Act. If that be so, thereafter it was not open for the A.O. to again levy / charge interest under section 234(B) of the Act in exercise of powers under section 154 of the Act. Under the circumstances, as such, no error has been committed by the learned tribunal in confirming the order passed by the learned CIT(A) deleting levy of interest under section 234(B) of the Act, which was passed by the A.O. in exercise of powers under section 154 of the Act, which was passed after the learned CIT(A), in exercise of appellate jurisdiction setting aside the levy of interest under section 234(B) of the Act vide order dated 28/11/2002. Now, so far as deletion of interest, charged under section 234(D) of the Act by the learned CIT(A), by the learned tribunal is concerned, Mrs.Bhatt, learned counsel appearing on behalf of the department has stated at the bar that as the amount involved is ₹ 97,009/- only, on the smallness of the amount only she does not press the present appeal qua deletion of interest charged under section 234(D) of the Act is concerned
Issues Involved:
1. Appeal against the order passed by the Income Tax Appellate Tribunal confirming the deletion of interest under sections 234(B) and 234(D) of the Income Tax Act. Analysis: 1. The appellant challenged the order of the Income Tax Appellate Tribunal, which confirmed the deletion of interest under sections 234(B) and 234(D) of the Income Tax Act. The Tribunal dismissed the appeal by the revenue and upheld the order passed by the CIT(A) deleting the interest charges. The primary question was whether the Tribunal was correct in law to confirm the deletion of interest under sections 234(B) and 234(D) levied by the Assessing Officer under section 154 of the Act. The appellant contended that interest under section 234(B) was incorrectly charged after being set aside earlier by the CIT(A), and interest under section 234(D) was wrongly charged post its introduction from 1/6/2003. The CIT(A) had quashed the order levying interest under both sections, and the Tribunal upheld this decision. 2. The facts leading to the appeal revealed that the Assessing Officer initially levied interest under section 234(B) in a Demand Notice, which was later set aside by the CIT(A) in 2002. Subsequently, the AO issued a rectification order in 2005, proposing to disallow certain amounts and charging interest under sections 234(B) and 234(D). The CIT(A) allowed the appeal against the disallowance, leading to a rectification application by the assessee highlighting mistakes in charging interest under both sections. The AO rejected the rectification application, leading to an appeal before the CIT(A, who set aside the order levying interest under both sections. The Tribunal upheld the CIT(A)'s decision, emphasizing that the AO could not charge interest under section 234(D) without proper reference during proceedings under section 154. 3. During the hearing, the counsel for the revenue acknowledged the insignificance of the amount involved in interest under section 234(D) and did not press the appeal on this matter. The court held that since the revenue did not challenge the earlier order setting aside interest under section 234(B) by the CIT(A), the AO had no authority to re-levy interest under section 154. Consequently, the court upheld the Tribunal's decision to delete the interest charges under section 234(B) and did not pass any order regarding interest under section 234(D due to the revenue not pressing the appeal. The court disposed of the present appeal accordingly.
|
