TMI Blog2011 (10) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order was passed by the Assessing Officer under Section 143(3) / 148 of the Act vide order dated 24th November, 2000. The operative portion of the order of the assessing officer is extracted hereunder:- 8. Initiate penalty proceedings under section 271(1)(c) for not offering the above income of taxation. Penalty proceedings under section 271B are also initiated as the assessee s business turnover exceeds Rs.40 lakhs and accounts are not audited as per section 44AB issue demand notice and challan. 3. From the aforesaid, it is clear that while completing the assessment, the assessing officer had not issued any direction in respect of charging interest under Section 243-B of the Act. 4. Pursuant to the assessment order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority. The Revenue, being aggrieved by the aforesaid orders, has filed the present appeal under Section 260-A of the Act. 7. The question of law, which is to be considered in the present appeal is whether interest under Section 234-B of the Act could be charged in the notice of demand issued under Section 156 of the Act in the absence of any specific order demanding interest in the assessment order. 8. In order to answer the question of law, it would be appropriate to examine a few provisions of the Act. 9. Section 143 (3) of the Act as it existed for the relevant year in question is extracted hereunder:- 143(3) On the day specified in the notice issued sub-section (2), or as soon afterwards as may be, after hearing su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct held that the Income Tax Officer has to determine, by an order in writing, not only the total income, but also the net sum which would be payable by the assessee for the assessment year in question and that the demand notice under Section 156 of the Act has to be issued in consequence of such an order. 13. In Ranchi Club Ltd. Vs. Commissioner of Income Tax others 217 I.T.R. 72, the assessment order did not mention about the levy of interest and a notice of demand was issued under Section 156 of the Act to the effect that the interest was payable on the tax due. The Patna High Court held that the levy of interest was not justified. The said decision was affirmed by the Supreme Court in Commissioner of Income Tax others Vs. Ranchi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is mandatory as held by the Supreme Court in Commissioner of Income Tax Vs. Anjum M. H. Ghaswala others 252 I.T.R. 1. There is no quarrel with the aforesaid proposition laid down by the Supreme Court, but, at the same time, the assessment order must contain the imposition of interest and, only thereafter, a notice of demand could be issued under Section 156 of the Act. To elucidate the matter, a notice of demand is somewhat like a decree in a civil suit, which must follow the order. When the judgment in a civil suit does not specify any amount to be recovered, the decree could not contain such amount. Similarly, when the assessment order under Section 143 (3) of the Act does not indicate that interest would be leviable, the notice of dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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