Delhi Automobiles (P) Ltd. vs Cit
2001 Latest Caselaw 1140 Del

JUDGMENT

Arijit Pasayat, C.J.

Pursuant to the directions given by the court under section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act'), the following question has been referred by the Tribunal for opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that there was no ground for appeal before the Appellate Assistant Commissioner in regard to the charge of interest under section 217(1A) of the Income Tax Act, 1961 ?"

2. Factual aspects need not be noted in detail in view of what has been held by this court in Ashok Kumar v. CIT (1998) 231 ITR 140 (Del). In that case a distinction was made between challenge to the chargeability of the interest and quantum thereof. The matter was also examined by the Apex Court in Associated Stone Industries (Kotah) Ltd. v. CIT (1997) 224 ITR 560 (SC). Keeping in view the ratio of the above decision, the answer to the question has to be in negative, in favor of the assessed and against the revenue. While dealing with the matter under section 260 of the Act, the Tribunal shall go into the connected factual aspects.

2. Factual aspects need not be noted in detail in view of what has been held by this court in Ashok Kumar v. CIT (1998) 231 ITR 140 (Del). In that case a distinction was made between challenge to the chargeability of the interest and quantum thereof. The matter was also examined by the Apex Court in Associated Stone Industries (Kotah) Ltd. v. CIT (1997) 224 ITR 560 (SC). Keeping in view the ratio of the above decision, the answer to the question has to be in negative, in favor of the assessed and against the revenue. While dealing with the matter under section 260 of the Act, the Tribunal shall go into the connected factual aspects.