TMI Blog2014 (10) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer is specifically required to mention the specific section for charging interest, failing which no interest could be levied. A notice of demand is somewhat like a decree in a civil suit, which must follow the order - When a 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 does not indicate that interest would be leviable, the notice of demand u/s 156 of the Act levying interest would be wholly illegal since interest is payable in consequence of an assessment order as is clear from Section 156 of the Act itself - the notice of demand cannot go beyond the assessment order and the assessee cannot be served with any such notice demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pursuant to the said assessment order, a notice of demand was issued under Section 156 of the Act demanding interest under the aforesaid sections. The assessee, accordingly, moved an application under Section 154 of the Act for rectification on the ground that no interest under Section 139(8) and 215 of the Act could be levied since no such direction was issued by the Assessing Officer in the assessment order. The Assessing Officer rejected the application of the assessee under Section 154 of the Act holding that charging of interest was mandatory and that the Assessing Officer had no discretion in the matter. The Assessing Officer, accordingly, rejected the application holding that there was no mistake apparent from the record. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so payable: Provided that where any sum is determined to be payable by the assessee or by the deductor under sub-section (1) of section 143 or sub-section (1) of section 200A, the intimation under those sub-sections shall be deemed to be a notice of demand for the purposes of this section. 7. A perusal of the aforesaid provision indicates that tax, interest, penalty or fine is payable in consequence of an order passed under the Act, namely, the assessment order. We are of the view that there has to be a specific order passed by the Assessing Officer charging interest and only thereafter, a notice of demand levying interest could be issued. 8. In Ranchi Club Ltd. vs. Commissioner of Income Tax and others, (1996) 222 ITR 44, the Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income Tax Vs. INSILCO Ltd. 261 I.T.R. 220. 10. In Uday Mistanna Bhandar Complex 222 I.T.R. 44 (Patna), while analyzing the provisions of Sections 234A, 234B and 234C vis- -vis Section 156 of the Act, the Patna High Court held that notice of demand claiming interest can be issued only when there is a direction in the assessment order for levying interest. In Smt. Tej Kumari others Vs. Commissioner of Income Tax others 247 I.T.R. 210, the Full Bench of the Patna High Court (Ranchi Bench) held that in the absence of any specific order, interest could not be charged or recovered from the assessee. 11. No doubt, the Supreme Court in Commissioner of Income Tax Vs. Anjum M.H. Ghaswala others, 252 ITR 1 held that the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice of demand cannot go beyond the assessment order and the assessee cannot be served with any such notice demanding interest, Further, the assessee must know that he has been charged interest under a particular section of the Act, which must be specify in the assessment order and only thereafter a notice of demand under Section 156 of the Act could be issued. 13. The learned counsel for the appellant has relied upon a decision of the Punjab and Haryana High Court in Dr. P.C. Khurana Vs. Commissioner of Income Tax, Jalandhar, 2012 (211) TAXMAN 43 (Punj Har.) wherein the Court held that an order levying interest under Section 215 and 139(8) of the Act can be passed by the Assessing Officer under Section 154 of the Act. This decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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