9911796707
TMI Blog1996 (6) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... estions for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (for short, " the Act ") : " (1) Whether, on the facts and in the circumstances of the case, it was permissible to the assessee to challenge the charging of interest when the order passed by the Commissioner of Income-tax under section 263(1) of the Income-tax Act, 1961, setting aside the assessment order with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also charged interest under sections 139 and 217. The Appellate Assistant Commissioner on appeal confirmed the action of the Income-tax Officer both in respect of the assessment and charging of interest. The assessee not being satisfied took this matter in appeal before the Appellate Tribunal. The Appellate Tribunal passed an order in which it held that no interest could be charged in reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest will be charged in reassessment proceedings. He further said that the Rajasthan High Court in CIT v. Jaipur Udyog Ltd. [1987] 167 ITR 306, the Bombay High Court in CIT v. Traub (India) P. Ltd. [1979] 118 ITR 525 and the Madras High Court in CIT v. T. T. Investments and Trades Pvt. Ltd. [1984] 148 ITR 347 have taken a view in favour of the assessee, holding that no interest could be charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxation Laws (Amendment) Act, 1984, with effect from April 1, 1985. Mr. Rastogi further referred to the circular of the Central Board of Direct Taxes as reported in [1985] 152 ITR (St.) 29, 37 and paragraphs 14.3 and 15.3 thereof. From this circular also it is clear that prior to April 1, 1985, interest could not have been charged in reassessment proceeding. We, therefore, find no difficulty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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