Commissioner Of Income-Tax vs Gold Tex Furnishing Industries
2002 Latest Caselaw 1422 Del

JUDGMENT

1. This is an appeal by the Revenue under Section 260A of the Income-tax Act, 1961 (for short "the Act"), challenging the order passed by the Income-tax Appellate Tribunal, Delhi Bench "B" (for short "the Tribunal"), dated August 23, 2001, deleting the interest charged under Sections 234B and 234C of the Act.

2. We find that while granting relief to the assessed, the Tribunal has relied on the decision of the Supreme Court in CIT v. Ranchi Club Ltd. [2001] 247 ITR 209, wherein two decisions of the Patna High Court in Ranchi Club Ltd. v. CIT [1996] 217 ITR 72 and Uday Mistanna Bhander and Complex v. CIT [1996] 222 ITR 44 have been affirmed.

3. In Uday Mistanna Bhander and Complex [1996] 222 ITR 44 (Patna), while analysing the provisions of Sections 234A, 234B and 234C vis-a-vis Section 156 of the Act, it was held that notice of demand claiming interest can be issued only when there is order in the assessment order levying interest. This view has been upheld by the apex court in CIT v. Ranchi Club Ltd. [2001] 247 ITR 209. It is pertinent to note that a Full Bench of the Patna High Court in Smt. Tej Kumari v. CIT [2001] 247 ITR 210 has again reiterated the view taken by the Division Benches in the aforenoted cases.

4. Admittedly, in the present case there is no direction in the assessment order for charging of interest under Sections 234A and 234B of the Act.

5. In view of the aforenoted authoritative pronouncements, no question of law, much less a substantial question of law arises from the order of the Tribunal.

6. Dismissed.