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2014 (10) TMI 622 - HC - Income TaxNotice of demand u/s 156 Interest charged u/s 215/217 and 139(8) - Whether the Tribunal was justified in holding that interest u/s 215/217 and 139(8) of the Act could not be charged unless specifically mentioned in the assessment order particularly when charging of interest was mandatory Held that:- There has to be a specific order passed by the AO charging interest and only thereafter, a notice of demand levying interest could be issued as decided in Commissioner of Income Tax Vs. Anjum M.H. Ghaswala & others [2001 (10) TMI 4 - SUPREME Court] - levy of interest is mandatory but at the same time the Assessing 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 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 u/s 156 of the Act could be issued - if the assessment order does not specify charging of interest under a specific section then it could not be charged or levied u/s 156 of the Act as such no substantial question of law arises for consideration Decided against revenue.
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