9911796707
TMI Blog2002 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of the actual calculation having been made in the order. Accordingly, the demand of interest for the period May 1999, to October 1999, in our view, is not permissible in the facts of this case. However, the assessee-petitioner is liable to pay interest for delayed payment of tax after expiry of the statutory period from the service of demand notices on him. - In the result, the writ application is allowed - - - - - Dated:- 18-12-2002 - Judge(s) : NAGENDRA RAI., R. S. GARG. JUDGMENT The petitioner has filed the present writ application for quashing the demand notices dated November 4/10, 1999, passed by the Deputy Commissioner of Income-tax, Circle-2(1), Patna, (respondent No. 4), with regard to charging interest under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner on March 23, 1999. On April 8, 1999, the petitioner filed a petition requesting the Assessing Officer to give effect to the order of the Settlement Commission and quantify the tax and interest payable by the petitioner and issue demand notice after giving credit to the prepaid taxes. The Department issued demand notices (annexures 7 series) to pay tax and interest charged under section 245D(6A) of the Act for the period May 1999, to October 1999. It appears that the assessee-petitioner has paid the entire tax along with the interest amounting to Rs. 6,68,614 on March 10, 2000. According to the petitioner, as the demand notices (annexures 7 series) in terms of the order of the Settlement Commission, were issued on November 10, 1999, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid. According to the Department, the order of the Settlement Commission was admittedly served on the assessee-petitioner on March 23, 1999, and the amount of tax and interest thereon were not paid within thirty-five days thereafter and as such the Department was justified in imposing interest thereon for the period May, 1999, to October, 1999 prior to the service of the demand notices under section 156 of the Act on the assessee-petitioner. If the order of the Settlement Commission is clear and has determined the amount of tax and interest and the same is served upon the assessee and the same is not paid within thirty-five days in terms of the aforesaid provision, the assessee is liable to pay interest. The case in hand is quite diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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