TMI Blog2003 (12) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... o the action of the AO for levy of interest under ss. 234A and 234B of the IT Act. The aforesaid two grounds are being taken up by us in subsequent paragraphs in seriatim. 2. At the time of hearing Shri Rakesh Gupta, C.A., appeared on behalf of the appellant and Shri R.R. Prasad, learned Departmental Representative on behalf of the respondent-Department. Their submissions have been considered while disposing of the present petition. 3. The brief background in relation to the first ground is that the appellant is a firm whose business includes construction/development/sale and purchase of real estate, etc. The assessee-firm started its business in terms of partnership deed dt. 7th July, 1997 with three partners namely Sh. Ravi Batra, Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said partner from the firm w.e.f. 31st March, 1998, it was beyond the control of the assessee-firm to obtain the necessary documents as are being insisted upon by the Revenue. It is argued that the entire amount of Rs. 11,50,000 has come through the banking channels. Our attention was drawn to the copy of the order of the assessment framed in the case of the individual Mr. A.P.S. Bawa for the asst. yr. 1998-99 in this regard. It was pointed out that the AO therein has indeed found that Mr. Bawa has contributed a sum of Rs. 11,50,000 in the appellant-firm as capital on various dates. On the basis of the aforesaid, it was argued that this amply demonstrates the genuinety of the entry made in the books of the assessee portraying the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be final as he did not have the relevant facts with him. 7. We have heard the rival submissions carefully and have also perused the material on record and proceed to dispose of the issue in the following lines. At the outset, we may state that the assessee has to succeed in this ground of appeal for the reasons discussed hereinafter. The facts are in a narrow compass in as much as that the assessee-firm depicted a sum of Rs. 11,50,000 as having been received from one of its partners Mr. A.P.S. Bawa as capital introduction. The assessment order in the case of the said individual Shri Bawa for the relevant assessment year, as adduced by the counsel for the assessee, clearly demonstrates that the credit in the books of the firm came from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder s. 271(1)(c) has been initiated separately." 10. On the basis of the aforesaid, the stand of the assessee is that the AO could not have charged interest as there was no direction in the assessment order for charging of interest under ss. 234A and 234B of the Act. Before us, it is contended by Shri Rakesh Gupta appearing on behalf of the appellant that the aforesaid issue has been adjudicated upon by the Hon ble High Court of Delhi in the case reported at CIT vs. Insilco Ltd. (2003) 179 CTR (Del) 214 : (2003) 261 ITR 220 (Del), as also CIT vs. Kishanlal (HUF) (2002) 258 ITR 359 (Del). Assessee s counsel has also placed reliance on the decision of the Delhi Bench of the Tribunal in the case reported at V.V. Industries vs. Asstt. CIT (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or in the computation sheet clearly lacks the statutory backing. The decisions relied upon by the counsel namely in the case of Kishan Lal (HUF) and Insilco are clearly applicable to the facts of the instant case. In fact, in the case of Insilco the Hon ble High Court was dealing with the direction in the assessment order to the effect "charge interest". Even against the aforesaid facts, the Hon ble High Court opined that since there was no specific direction to charge interest in the order of assessment itself, the interest could not be charged. The case before us is even on a weaker footing in so far as the Department is concerned. A perusal of the portion of the assessment order extracted above reveals that there is no direction whats ..... X X X X Extracts X X X X X X X X Extracts X X X X
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