TMI Blog2008 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... s justified in admitting the appeal on the question of charging of interest under ss. 234A, 234B and 234C of the Act? 3. The issue is covered by the decision of Hon'ble Supreme Court in the case of Central Provinces Manganese Ore Co. Ltd. vs. CIT (1986) 58 CTR (SC) 112 : (1986) 160 ITR 961 (SC). It is held therein that levy of interest is part of the process of assessment and it is open to the assessee to dispute the levy of interest under s. 139(8) or s. 215 in appeal provided he limits himself to the ground that he is not liable to the levy at all. This view has been followed by various Courts and the Tribunal. 4. The Hon'ble Gujarat High Court in the case of CIT vs. Industrial Machinery Mfg. (P) Ltd. (2006) 202 CTR (Guj) 83 : (2006) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a creature of the statute and there can be no right of appeal unless it is conferred by the statute, but the language of a provision conferring the right of appeal is required to be construed liberally. Sec. 246A(1)(a) of the Act provides an appeal to an assessee; where the assessee denies his liability to be assessed under this Act, it should be construed wide enough to permit an assessee to file an appeal against his liability for interest. The Hon'ble Delhi High Court in the case of CIT vs. Mahabir Parshad Sons (1980) 17 CTR (Del) 161 : (1980) 125 ITR 165 (Del) supports this view. Similarly, the Hon'ble Madhya Pradesh High Court in the case of Durgaprasad Rajaram Adatiya vs. CIT (1981) 21 CTR (MP) 4 : (1982) 134 ITR 601 (MP) also held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand". Along with this, the AO issued an intimation under s. 143(2)/notice of demand under s. 156 wherein he charged interest under s. 234A at Rs. 27,950, interest under s. 234B at Rs. 35,475 and interest under s. 234C at Rs. 3,976. This notice of demand is dt. 29th Dec., 2006. Later, the AO carried out rectification under s. 154 on 22nd Feb., 2007, wherein he gave effect to the advance tax paid by the assessee and thereafter worked out interest under s. 234A at Rs. 12,350, interest under s. 234B at Rs. 9,975 and interest under s. 234C at Rs. 2,176. 8. An appeal was filed before the learned CIT(A), who admitted the same and accepting the contentions of the assessee that interest under ss. 234A, 234B and 234C could not be charged without s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so done then such interest cannot be charged. He then referred to the decision of Hon'ble Supreme Court in Ranchi Club Ltd.'s case and also in CIT vs. Insilco Ltd. (2005) 198 CTR (SC) 114 : (2005) 278 ITR 1 (SC), for the proposition that law laid down in Ranchi Club Ltd.'s case has not been changed by virtue of the decision of Constitutional Bench in CIT vs. Anjum M.H. Ghaswala. 11. We have considered the rival submissions and have perused the record of the case. In our considered view, the short question involved is whether interest under ss. 234A, 234B and 234C can still be charged if there is no specific mention to that effect in the assessment order? In our considered view, once a Constitutional Bench of apex Court has held in CIT vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch in CIT vs. Anjum M.H. Ghaswala's case, there is no discretion left with AO. In other words, if there is a default committed by the assessee of the nature mentioned in those sections then charging of interest becomes mandatory. Even the Hon'ble Supreme Court in the case of Kalyankumar Ray held that an assessment is complete only after issue of demand notice. In this regard, we refer to para at p. 638 of the said decision as under: "The statute does not, however, require that both the computations (i.e., of the total income as well as of the sum payable) should be done on the same sheet of paper, the sheet that is superscribed 'assessment order'. It does not prescribe any form for the purpose. It will be appreciated that once the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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