TMI Blog2015 (7) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... for R-1 2 ORDER 1. Petitioner has sought the following prayers in these writ petitions : (a) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the letter issued by respondent No. 1 dt. 10th Dec, 2013 vide No. TRO-CR-l/BNG/Govindachary/2013-14 in respect of calculation of interest under s. 220(2) of the Act at ₹ 2,28,01,073 for the asst. yrs. 2006-07 to 2009-10 herein marked as Annex. A. (b) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the letter issued by respondent No. 1 dt. 31st Jan., 2014 vide F.No. Auction/TRO/CR-l/BNG/Govindachary/2012-13 in respect of auction proceedings for realisation of interest under s. 220(2) of the Act herein marked as Annex. B. (c) Declare that the interpretation placed by the Revenue on calculation of interest under s. 220(2) of the Act is contrary to intent and object of the said provisions of s. 220(2) of the Act. (d) Direct respondent No. 1 to recalculate the interest under s. 220(2) of the Act as per the provisions of s. 220(2) of the Act. The substance of the controversy in this case is however, with regard to the starting point or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date and not from the expiry of the period as stated in sub-s. (2) s. 220 of the Act. 4. I have heard the learned counsel for petitioner and learned counsel for respondent and perused the material on record. 5. During the course of submission, learned counsel for petitioner relied upon the decision of the Hon'ble Supreme Court in the case of Vikrant Tyres Ltd. V/s. First Income-Tax Officer (ITR 2001 (247) 821) and also the judgment of the Division Bench of the Jharkhand High Court in the case of Commissioner of Income Tax V/s. Late Misrilal Jain through Executor Gyanchand Jain [(2012) 254 CTR Jharkhand Reports 554] and contended that interest has to be reckoned only after the expiry of the period stipulated under sub-s. (1) of s. 220 of the Act. Therefore, petitioner's counsel contended that the Department has not followed the said decisions while demanding interest with effect from the date on which the return had to be filed. 6. Learned counsel for respondents relied upon sub-s. (3) of s. 140A of the Act to contend that if there is non-compliance of sub-s. (1) of s. 140A, then the assessee becomes a defaulter and therefore, the Department is justified in levying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances beyond the control of the assessee ; and (iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him. (2B) Notwithstanding anything contained in sub-s. (2), where interest is charged under sub-s. (1A) of s. 201 on the amount of tax specified in the intimation issued under sub-s. (1) of s. 200A for any period, then, no interest shall be charged under sub-s. (2) on the same amount for the same period. (3) Without prejudice to the provisions contained in sub-s. (2), on an application made by the assessee before the expiry of the due date under sub-s. (1), the AO may extend the time for payment or allow payment by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case. (4) If the amount is not paid within the time limited under sub-s. (1) or extended under sub-s. (3), as the case may be, at the place and to the person mentioned in the said notice the assessee shall be deemed to be in default. (5) If, in a case where payment by instalments is allowed under sub-s. (3), the assessee commits defaults in paying any one of the instalments w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commencing after end of the period aforesaid in accordance with s. 220(2). 4. If you do not pay the amount within the period specified above, penalty (which may be as much as the amount of tax in arrear) may be imposed upon you after giving you a reasonable opportunity of being heard in accordance with section 221. 5. If you do not pay the amount of the tax within the period specified above, proceedings for the recovery thereof will be taken in accordance with ss. 222 to 229, 231 and 232 of the IT Act, 1961. 6. If you intend to appear against the assessment/fine/penalty, you may present an appeal under Part A of Chapter XX of the IT Act, 1961, to the CIT(A) within thirty days of the receipt of this notice, in Form No. 35, duly stamped and verified as laid down in that form. 7. The amount has become due as a result of the order of the Addl./Jt. CIT/CIT(A)/Chief CIT or Act, 1961. If you intend to appeal against the aforesaid order, you may present an appeal under Part 'B' of Chapter XX of the said Act to the Tribunal within sixty days of the receipt of that order, in Form No. 36, duly stamped and verified as laid down in that form. Place: Bangalore Date : 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1992. The authorities below were, thus, right in holding that the assessee in the present case was liable to pay interest from the date of the order dt. 24th March, 1992. The question is, therefore, answered accordingly. 10. In view of the above reasons, there is no merit in this appeal, which is dismissed. In fact, in para 3 of the notice extracted above, it is categorically stated that the outstanding dues, have to be paid within a period of thirty days from date of service of notice, failing which to pay simple interest at one end one-fourth per cent for every month or part of a month from the date commencing after end of the period specified in accordance with law. Sec. 220 states that the period specified in sub-s. (1) of s. 220 of the Act is, thirty days from the date of service of notice, within which outstanding dues have to be paid. If that amount is not paid, then the assessee shall be liable to pay simple interest as stipulated under sub-s. (2) of s. 220 of the Act. In that view of the matter, Annex. A is quashed. In the result, writ petitions are allowed in the aforesaid terms without considering the other prayers of the petitioner. - - TaxTMI - TMITax - ..... 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