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TMI Blog2015 (12) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing substantial questions of law:- 1. Whether on facts and in the circumstances, the Ld. ITAT was right in law in upholding the order of CIT(A) in deleting interest u/s 234A of the Income Tax Act and to restrict the levy of interest u/s 234B of the Income Tax Act charged by the Assessing Officer even though in the charging of interest u/s 234A and 234B is mandatory in nature and is contrary to the decision of the Hon'ble Supreme Court in the case of CIT Vs. Anjum M.H. Ghaswala & others (2001) 252 ITR 1 (SC) wherein it is held that Sections 234A and 234B are independent provisions of the Income Tax Act and if conditions for attracting these provisions exist the Assessing Officer shall have to levy the same as held that the levy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale for computation of capital gains, rather, that capital gains have to be computed on considerations received or accruing? 2. Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee is an agriculturist and had filed the return of income on 10.10.2007 for the assessment year 2007-08 declaring a total income of Rs. 11,69,85,910/- including long term capital gain of Rs. 11,69,05,260/- under Section 139(1) of the Act in which the assessee had voluntarily paid interest to the tune of Rs. 5,24,261/-, Rs. 15,72,783/- and Rs. 2,62,130/- under Sections 234A, 234B and 234C of the Act respectively. The case of the assessee was selected for scrutiny and the Assessing Officer vide or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions 234A and 234C of the Act and in restricting the interest charged under Section 234B of the Act. 5. After hearing learned counsel for the revenue, we do not find any merit in the appeal. 6. In this appeal, two issues arise for consideration of this Court, namely, (i) Whether the CIT(A) was well within his jurisdiction to entertain the first appeal under Section 246 of the Act against the chargeability of interest by the Assessing Officer under Sections 234A, 234B and 234C of the Act; and (ii) Whether the CIT(A) and the Tribunal were justified in deleting the interest under Sections 234A and 234C of the Act and in restricting the interest charged under Section 234B of the Act. 7. Adverting to issue No. (i), it may be noticed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the CIT(A) was clearly maintainable. 9. Similar contention raised by the revenue before the Tribunal against maintainability of appeal before the CIT(A), against levy of interest under Sections 234A, 234B and 234C of the Act, was repelled with the following observations:- "12. We have occasion to go through the decision of Hon'ble Supreme Court in the case of Central Province Manganese Ore Co. Ltd. vs. CIT (1986) 160 ITR 961 (SC) on an identical issue. The issue raised before the Hon'ble Supreme Court was as to whether orders levying interest under sub-section (8) of section 139 and under sec. 215 are appealable under sec. 246 of the Act. Hon'ble Supreme Court after detailed discussion has been pleased to hold that the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention as discussed above of the assessee remained that it was not liable to the levy of interest under Sec. 234A, 234B and 234C of the Act. Thus, respectfully following the ratio laid down by the Hon'ble Supreme Court in the above cited case, we hold that the first appeal against the levy of the disputed interest under Sec.234A, 234B and 234C was very much maintainable under sec. 246 of the Act. Hon'ble Supreme Court has been also pleased to observe that clause (c) of sec. 246 provides an appeal against an order where the assessee denies his liability to be assessed under the Act or against any assessment order under sub-section (3) of sections 143 or 144, where the assessee objects to the amount of income assessed or to the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs out of the capital gain so worked out. Still further, the liability to pay interest under Section 234C of the Act qua the capital gains was held to be unwarranted in view of the specific provisions of the Act and the CIT(A) was correct in deleting the interest levied under Section 234C of the Act. The Tribunal had recorded as under:- "13. Here, in the present case, it is not the case that the learned CIT(Appeals) has allowed the appeal of the assessee on the basis that in absence of directions in the assessment order interest under Sec. 234A, 234B and 234C cannot be charged on the basis of ITNS 150 or demand notice. Thus, there is no need to consider the arguments advanced by the parties in this regard. The learned CIT(Appeals) inste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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