9911796707
TMI Blog2020 (12) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable under Section 220(2) of the Act. - I.T.A. NO.194 OF 2015 - - - Dated:- 23-11-2020 - HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE H.T. NARENDRA PRASAD APPELLANTS (BY SRI. K.V. ARAVIND, ADV.) RESPONDENT (BY SRI. T. SURYANARAYANA, ADV.) JUDGMENT ALOK ARADHE J., Mr. K.V. Aravind, learned counsel for the revenue. Mr. T. Suryanarayana, learned counsel for the assessee. 2. This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act , for short) has been preferred by the revenue. The subject matter of the appeal pertains to the Assessment Year 2007-08. The appeal was admitted by a Bench of this Court vide order dated 07.09.2015 to consider the following s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer passed an order on 07.03.2011 giving effect to the order dated 07.09.2012 passed by the Tribunal. The Assessing Officer charged the interest under Section 234C of the Act. The assessee challenged the levy of interest under Section 220(2) of the Act for the period during which the Assessing Officer himself has granted the stay of recovery. The Assessing Officer also granted refund of interest under Section 244A of the Act which according to the assessee was not properly calculated. Being aggrieved, the assessee filed an appeal. The Commissioner of Income Tax (Appeals), by an order dated 25.11.2013, inter alia held that interest under Section 234C of the Act could not have been levied. It was further held that sofar a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and circumstances of the case and does not call for interference by this Court. 5. We have considered the submissions made on both sides and have perused the record. The levy of interest under Section 220(2) of the Act is prescribed by the statute. When stay is granted to a party, it is always subject to a statutory provision and it is well settled in law that mere grant of stay does not prevent the running of the interest. Therefore, the finding recorded by the Commissioner as well as the Tribunal that the interest under Section 220(2) of the Act is not chargeable during the period of stay is perverse as the interest is mandatorily leviable under Section 220(2) of the Act. For the aforementioned reasons, the second substantial q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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