TMI Blog2013 (12) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... nding sections pertaining to imposition of interest used the expression "may". The change thus brought about by the Finance Act 1987 is indicative of the intention of the Legislature to make the collection of interest mandatory - The said expression "shall" has been used deliberately - Decided against Revenue. - Income Tax Appeal No. - 48 of 2003 - - - Dated:- 18-5-2012 - Hon'ble Ashok Bhushan And Hon'ble Prakash Krishna,JJ. For the Petitioner : A. N. Mahajan, A. N. Mahajan, Ashok Kumar, Bharatji Agarwal, D. Awasthihi, G. Krishnana,R. K. Upadhyaya,S. Chopra ORDER (Delivered by Prakash Krishna,J) Raising a short dispute with regard to compulsory levy of interest under section 234-B of the Income Tax Act, the revenue has file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion "Whether on the facts and circumstances of the case the Tribunal is justified in law in directing the A.O not to charge interest under section 234-A, 234-B and 234-C of the Income Tax Act, 1961 in the absence of the any direction by the AO in the assessment order?" Heard Shri R.K.Upadhyaya, learned standing counsel for the Department and Shri Suyash Agrawal, learned counsel for the assessee-respondent. Shri Upadhayaya, learned standing counsel submits that in view of authoritative pronouncement of the Apex Court in the case of CIT Versus Anjum M.H Ghaswala (2001) 252 ITR 1 (SC), charging of interest under sections 234-A, 234-B and 234-C is mandatory. Even Settlement Commission could not waive the charging of interest. In reply, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... magination be construed as "may". There are sufficient indications in the scheme of the Act to show that the expression "shall" used in Sections 234-A, 234-B and 234-C is used by the Legislature deliberately and it has not left any scope for interpreting the said expression as "may". This is clear from the fact that prior to the Amendment brought about by the Finance Act, 1987, the Legislature in the corresponding section pertaining to imposition of interest used the expression "may" thereby giving a discretion to the authorities concerned to either reduce or waive the interest. The change brought about by the Amending Act (Finance Act, 1987) is a clear indication of the fact that the intention of the Legislature was to make the collection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions prior to the amendment gave discretion in regard to waiver of interest. Once interest is mandatory the liability false automatically on the assessee on default. The rest is only working out the amount. Further reliance has been placed upon another unreported judgment of Uttrakhand High Court delivered in Income Tax Appeal No.15 of 2006 dated 14.10.2011 in Commissioner of Income Tax, Dehradun Versus M/s Dehradun Club Ltd. wherein also reliance has been placed on Ranchi Club Ltd. versus Commissioner of Income Tax others 217 I.T.R 72 and other decisions such as of Punjab Haryana High Court in Vinod Khurana versus Commissioner of Income Tax another 253 I.T.R 578 and of Delhi High court in Commissioner of Income Tax versus Kis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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