2014 (12) TMI 637

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..... admitting the appeal:     "Whether on the facts and in the circumstances of the case, the Income - Tax Appellate Tribunal was justified in law in holding that interest was rightly charged under Section 234B(4) of the Income-tax Act, 1961 despite the fact that no interest had been levied under Section 234B(1) of the Act at the time of framing regular assessment under Section 143(3) of the Act?" 2. The assessee company is engaged in the business of manufacturing and trading in industrial gases. The assessee company filed its return of income for the assessment year in question after having set off of brought forward business loss and unabsorbed depreciation of earlier years. The Assessing Officer allowed the claim of set off .....

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..... ed that the Tribunal has rightly observed that since in the subsequent order, the assessee's income turned in positive figure, it was liable to pay interest and the assessee should have anticipated these circumstances. He submitted that the Tribunal has rightly considered the decision of the Apex Court in the case of CIT vs. Ranchi Club reported in 247 ITR 209. He has relied upon the decision of the Himachal Pradesh High Court in the case of CIT vs. Ruchira Papers Ltd reported in [2013] 212 taxman 9. He submitted that the present appeal lacks merit and therefore deserves to be dismissed. 5. We have heard learned advocates for both the sides and perused the orders passed by the CIT as well as the Tribunal. At this juncture it shall be r .....

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..... ent order u/s 143(3) of the Act, the ld. Assessing Officer has not directed tolevy the interest u/s 234-B. Therefore, while passing the order u/s 154 rws 155 of the Act, he cannot levy the interest afresh in view of the Hon'ble Supreme Court's decision rendered in the case of CIT vs. Ranchi Club (247 ITR 209). Since the income of the assessee in the original assessment was determined at NIL there was no occasion for charging the interest under the above provisions, otherwise as far as levy of interest is concerned, it is a mandatory and while giving the consequential effect, the ld. AO has rightly charged the interest. To this effect, we are fortified by the judgement of the Hon'ble Supreme Court rendered in 252 ITR 1 in the cas .....

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