2012 (9) TMI 334 - SUPREME COURT

Interest u/s 234A/234B - Whether the interest levy is mandatory ? - Held that:- As decided in CIT Versus Anjum M. H. Ghaswala And Others [2001 (10) TMI 4 - SUPREME COURT] the Board has issued circulars by Notification No. F. No.400/234/95-IT(B), dated May 23, 1996 as per which it has empowered that the Chief Commissioner of Income-tax and Director-General of Income-tax may waive or reduce interest charged under sections 234A, 234B and 234C beneficial to assessees, such benefit can be conferred on assessees who have approached the Settlement Commission under Section 245C on such terms and conditions as contained in the circular.

As this aspect has not been considered in the present case by the High Court in its impugned order it need to be set aside directing the Tribunal to consider whether the assessee would be entitled to waiver of interest under the Circular - in favour of assessee by way of remand.