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2012 (10) TMI 60 - HC - Income TaxInterest under Sections 234A and 234B - whether interest can be charged in an order of rectification under Section 154 for the first time - Held that:- If the return is not filed within time or if advance tax is not paid within time then the assessee is liable to pay interest and the payment of interest is mandatory. However, if the AO or the appellate authority does not order the payment of interest, the assessee cannot be directed to pay interest by the demand notice. AO virtually acts like a judicial officer but if he passes a wrong order not to levy the interest then the revenue must challenge the said order get the same set-aside and an order must be passed directing interest should be paid. If no such order is there, the revenue cannot claim interest. However, in case the assessment order is silent with regard to the payment of interest then without challenging the assessment order the revenue cannot, while issuing notice of demand, claim interest under the aforesaid sections - in favour of assessee.
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