2005 (3) TMI 72 - HC - Income Tax

First point is with regard to the charging of interest u/s 201(1A) on the amount defaulted – Assessee contended that interest payable in terms of sections 234A, 234B and 234C where the statute used the expression "liable to pay interest" alike section 201(1A), was held to be discretionary by a circular issued by the Board on May 23, 1996 - In respect of first point held that the interest payable u/s 201(1A) is mandatory and can neither be waived nor the rate could be reduced - second point is in respect of creation of new range and ward under the jurisdiction of CIT under section 120, assessee contend that has been raised is that the officer who had passed the order had no jurisdiction and as such the order passed is a nullity and cannot be enforced – Held that proceedings and the orders in relation to the assessment years 1983-84, 1984-85,1986-87 and 1987-88 being without jurisdiction and nullity are hereby set aside.