2009 (7) TMI 119

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..... t the appropriate course to follow would be to set aside the impugned order and to remand the matter to the tribunal so that the revenue’s appeal is heard alongwith the assessee’s appeal - 596/2005 - - - Dated:- 24-7-2009 - BADAR DURREZ AHMED and RAJIV SHAKDHER JJ. Ms. Suruchi Aggarwal with Ms. Payal Jain for the Appellant. Mr. Prakash Kumar for the Respondent. JUDGMENT The judgment of the court was delivered byt BADAR DURREZ AHMED, J. - On 20.02.2009, when this matter came up for hearing, this court passed the following order:- "While admitting this appeal, the following substantial question of law was framed by virtue of this Court's order dated 16.08.2005 :- "Whether the Tribunal was in the instant case justif .....

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..... the above extracts, it is apparent that the issue before the Commissioner of Income Tax was whether the levy of interest u/s 234 A 234 B of the Income Tax Act, 1961 was to be computed on the basis of returned income or assessed income. The Commissioner of Income Tax (Appeals) came to the conclusion that such interest was to be computed on the basis of returned income and consequently directed the Assessing Officer to re-compute the interest chargeable under the said provisions. Being aggrieved by the said order, the Revenue preferred the appeal bearing ITA No.1949/Del/2001 in respect of the assessment year 1997-98 before the Income Tax Appellate Tribunal. The Tribunal, however, instead of deciding the question as to whether the interest .....

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..... order of the Commissioner of Income Tax (Appeals) had been accepted by the assessee. It was also urged that the Tribunal failed to appreciate that once the assessee had accepted the order passed by the Commissioner of Income Tax (Appeals) and had not challenged the same before the Tribunal, the Tribunal was not justified in holding that the interest could not be charged unless and until there is a specific direction in the assessment order. It was urged that the Tribunal ought not to have deleted the levy of interest in its entirety when there was no such specific plea raised by the assessee. The learned counsel for the revenue submitted that the Tribunal's order deserves to be set aside on this ground alone that the question before it w .....

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