Commissioner of Income Tax vs Kishan Lal (HUF)

This is an appeal by the Revenue u/s 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 234A and 234B of the Act.

We find that while granting relief to the assessed, the Tribunal has relied on the decision of the Supreme Court in Commissioner of Income Tax and Others Vs. Ranchi Club Ltd., , wherein two decisions of the Patna High Court in Ranchi Club Ltd. Vs. Commissioner of Income Tax and Others and Uday Mistanna Bhandar and Complex, Tej Kumari Devi and Ranchi Club Ltd. Vs. Commissioner of Income Tax and Others, ) have been affirmed.

In Uday Mistanna Bhandar and Complex, Tej Kumari Devi and Ranchi Club Ltd. Vs. Commissioner of Income Tax and Others, , 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 an order in the assessment order for levying interest. This view has been upheld by the apex court in Commissioner of Income Tax and Others Vs. Ranchi Club Ltd., It is pertinent to note that a Full Bench of the Patna High Court in Smt. Tej Kumari and Others Vs. Commissioner of Income Tax and Others, has again reiterated the view taken by the Division Benches in the aforenoted cases.

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.

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.

Dismissed.