Commissioner of Income Tax vs Ruteshbhai K. Bhatt

H.N. Devani, J.—The following question has been referred by the Income Tax Appellate Tribunal, Ahmedabad Bench ''C'' u/s 256(1) of

the Income Tax Act,1961 (the Act), for the opinion of this Court at the instance of the Commissioner of Income Tax, Gujarat II, Ahmedabad :

Whether, in law and on fact, the Appellate Tribunal is right in sustaining the order of the Commissioner of Income Tax (Appeals) in deleting

interest charged by the Income Tax Officer u/s 215 of the Income Tax Act, 1961?

The Assessment Year is 1982-83 and the relevant accounting period is the year ended on 31/12/1981. The Income Tax Officer charged

interest u/s 215 of the Act consequent to the order of the Commissioner u/s 263 of the Act.

The assessee carried the matter in Appeal before the CIT(Appeals), who deleted the interest charged by the Income Tax Officer u/s 215 of the

Act on the ground that sub-section (3) of Section 215 of the Act came into effect only from 1/4/1985 and was therefore, not applicable for the

Assessment Year 1982-83.

The revenue carried the matter in Appeal before the Tribunal. The Tribunal for the reasons stated in the order dated 31/05/1991 upheld the

order of CIT(Appeals) and dismissed the Appeal of the revenue.

The issue in question stands concluded against the revenue by a direct decision of this Court in the case of Commissioner of Income Tax Vs.

Vishwajit M. Mehta,

In light of the fact that the issue stands answered by the aforesaid decision of this Court it is not necessary to set out the facts and contentions in

detail, and for the reasons stated in the case of CIT v. Vishwajit Mehta (supra) the question referred to the Court is answered in the affirmative i.e.

in favour of the assessee and against the revenue.

The Reference stands disposed of accordingly. There shall be no order as to costs.