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TMI Blog2014 (7) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessing officer after applying his mind had ordered charging of interest under a particular Section and that a general order directing that interest would be charged as per Rules or directing that charge interest as per Law was not a specific order for levying interest - If interest is leviable under Sections 234-A, 234-B or 234-C of the Act, then such levy of interest is mandatory and compensatory in nature - in order to levy interest under the Sections the AO is specifically required to mention the specific section of charging interest, failing which, no interest could be levied under those Sections - Penal proceedings are totally different and distinct from charging interest - it is not necessary nor obligatory for the AO to dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing authority was set aside and the Tribunal granted deduction under Section 80-HHC on the sale of goods made at the counter in convertible foreign exchange. The assessing authority, while processing the income also directed that interest would be charged as per the Rules. The Tribunal also reversed this finding contending that unless there is a specific order under a particular Section to levy interest, no interest could be charged. The Tribunal further held that since the particular Section under which levy of interest was not mentioned, the levy of interest could not be charged. The revenue, being aggrieved by the decision of the Tribunal, has filed the present appeal under Section 260-A of the Act. We have heard Sri Shambh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court held, that an order of the assessing officer in the assessment order to charge interest has to be specific and clear, namely, that the assessee must know that the assessing officer after applying his mind had ordered charging of interest under a particular Section and that a general order directing that interest would be charged as per Rules or directing that charge interest as per Law was not a specific order for levying interest. The High Court held, that where such general order was passed directing interest to be charged as per Rules, the same would have no effect and that no interest could be leviable. The said decision of the Patna High Court was affirmed by the Supreme Court in Commissioner of Income Tax and others vs. Ranch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a specific direction from the Assessing Officer. In this particular case we have to follow the judgment in Anjum Ghaswala's case [supra] in toto. In the said judgment it has been held that in appropriate cases, the Chief Commissioner has an authority to waive the interest. The learned counsel submitted that in the light of the said decision of the Supreme Court in Karanvir Singh Gossal (supra), the decision in the case of Ranchi Club Ltd. (supra) stands overruled. The learned counsel submitted that since the provision of charging interest under Sections 234-A, 234-B and 234-C of the Act was mandatory, it was not necessary that a specific direction was now required to be issued by the assessing officer in the assessment order. Hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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