9911796707
TMI Blog2012 (6) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... is attracted to the facts of this case. In writ Petition Nos. 6385 & 6386/2010 the petitioner has challenged the similar order passed by the assessing authority. However, in view of the orders passed directing clubbing of those Writ Petitions with the above Writ Appeals they are placed before us for consideration. 2. In substance what is challenged in the Writ Petitions is the order passed by the assessing authority. Against the order passed by the assessing authority under the Income Tax Act, 1961, a statutory appeal is provided. Against the order of the appellate authority a second appeal is provided to the Income-Tax Appellate Tribunal. When the appellants and the petitioner's have an alternative and efficacious remedy against the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular No 8/2009 issued by the Board on 24 November, 2009, regarding the applicability of the provisions under Section 194(i) of the Income-Tax Act, 1961, in the course of transactions by the third party administration (PPP Hospitals) etc. After hearing the learned counsel appearing for the parties regarding the validity of the said Circular, we decline to go into the same. All that is to be said is that the appellate authority shall decide the appeals keeping in mind the law. If and when the orders passed by those authorities go against the assessees, it is open to the assessees to challenge not only the said order but also the Circular in question if they choose to do so. 4. It is also submitted that, in the Circular it is made clear now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly after verifying the records of both the assessee and the creditor of the assessee. To that extent the impugned order passed is set aside. Accordingly, the appeal is partly allowed and the matters are remitted back to the Assessing Authority to undertake the exercise and find out the liability of interest payable by the assessee. Ordered accordingly, No Costs." Even otherwise the law is well settled that the payment of interest under the Act is compensatory in nature. The authorities shall re-do the exercise of calculating the interest and thereafter issue a fresh demand if they choose to recover the same. That would meet the ends of justice. With the above observations, the Writ Petitions and Writ Appeals are disposed off. If the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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