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2015 (7) TMI 413 - PUNJAB & HARYANA HIGH COURT

2015 (7) TMI 413 - PUNJAB & HARYANA HIGH COURT - TMI - Levy of interest u/s 234A & 234B on returned income or assessed income - Retrospective amendment made by the Finance Act, 2001 w.e.f. 01.04.1989 - Held that:- We are bound by the decision of this Court in Parkash Agro Industries Vs Dy. Commissioner of Income Tax [2007 (10) TMI 294 - PUNJAB AND HARYANA HIGH COURT ] which has answered this question in favour of the appellant i.e. interest was chargeable on the assessed income. - Decided in fav .....

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dmitted on the following substantial question of law:- 8(i) Whether on the facts and in the circumstances of the case, the ITAT is right in law in holding that interest u/s 234A and 234B is to be levied on returned income instead of assessed income in view of the retrospective amendment made by the Finance Act, 2001 w.e.f. 01.04.1989? 3. It is not necessary to consider the other questions of law raised in this appeal in favour of the appellant/revenue. On 14.02.2000, the Assessing Officer made a .....

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. By the Finance Act, 2001 Section 234-B was amended with retrospective effect from 01.04.1989. By this amendment, interest was chargeable on the assessed income. The constitutional validity of this amendment has been upheld by a Division Bench of this Court in Raj Kumar Singal Vs Union of India [2002] 255 ITR 561 (P&H). A Division Bench of this Court in Parkash Agro Industries Vs Dy. Commissioner of Income Tax, (2009) 316 ITR 149 (P&H) has answered the question in favour of the departme .....

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equent proceedings, that issue has become academic. The facts in this regard are as follows:- On 02.05.2001, the Assessing Officer applied for/recommended the rectification of the order dated 23.02.2001 in view of the Finance Act, 2001. On 04.05.2001, the department filed an ITA-194-2001 against the order of the CIT (Appeals) dated 23.02.2001. On 06.12.2001, the CIT (Appeals) rectified the order dated 23.02.2001 by levying interest on the assessed income and not on the returned income. The respo .....

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Appeals) in which the original order dated 23.02.2001 was passed and in the rectification proceedings initiated under Section 154 of the Act. 6. In view of the judgements of this Court, we have referred to, the question of law must be answered in favour of the department. It is not necessary to consider whether the proceedings under Section 154 of the Act were maintainable or not for the simple reason that the main issue, namely, whether interest was chargeable on the returned income or on the a .....

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