INCOME TAX OFFICER v. RAM SWAROOP GUPTA
[Citation -1984-LL-0824-4]
| Citation | 1984-LL-0824-4 |
|---|---|
| Appellant Name | INCOME TAX OFFICER |
| Respondent Name | RAM SWAROOP GUPTA |
| Court | ITAT |
| Relevant Act | Income-tax |
| Date of Order | 24/08/1984 |
| Assessment Year | 1976-77, 1978-79, 1979-80, 1980-81 |
| Judgment | View Judgment |
| Keyword Tags | reassessment proceedings • payment of interest • interest chargeable • regular assessment • penal interest • demand notice |
| Bot Summary: | There are more or less common points in all these appeals and the deletion of interest charged under s. 139(8) and s. 217 has been challenged in these appeals. The ITO while passing the assessment order had not given any direction that interest should be charged under s. 139(8) or s. 217. In ITNS 150, interest was charged under these sections and the assessee came in appeal before the AAC. Reliance was placed on the J K High Court ruling reported in CTR 279: 107 ITR 382, which has been followed by the Calcutta High Court in 139 ITR 498 further in 29 CTR 315: 135 ITR 369 the Allahabad High Court held that charging of interest under s. 139(8) in not automatic and the ITO is expected to apply his mind to the facts of the case if the assessee is able to satisfy him, he may reduce or waive the interest chargeable under the provisions. His contention is that the ITO had passed an implied order to charge interest He has also relied on CIT vs. Executors of the Estate of H H. Rajkuverba Dowager Maharani Shiba of Gondal 1978 CTR 347: 115 ITR 301 for the proposition that interest need not be charged in the assessment order itself, but can be charged separately after the assessment is made. 139 ITR 498 are clearly authorities for the proposition that unless the order of assessment itself incorporates an order for the payment of interest, the assessee cannot be asked by means of a demand notice to pay penal interest both under ss. In 1978 CTR 347: 115 ITR 301, the Karnataka High Court had held that an order to charge interest is not a part of the assessment order and the CIT cannot pass an order under s. 263 directing the ITO to charge interest. To some extent helps the case of the Revenue, but the majority of the cases cited above, it was held that the order to charge interest must be passed specifically by the ITO in the assessment order itself. |