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2016 (2) TMI 633 - GUJARAT HIGH COURT

2016 (2) TMI 633 - GUJARAT HIGH COURT - [2016] 386 ITR 56 - Interest for defaults in payment of advance tax u/s 234B - demand raised in the notice issued under section 156 - Held that:- Considering the totality of the facts and on conjoint reading of the aforesaid provisions of sections 143, 234B and 156 of the Income Tax Act and when levy of interest under section 234B of the Act is held to be mandatory and automatic, and the same is on the difference between the advance tax paid and assessed t .....

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d tax, there can be demand of levy and demand of interest under section 156 of the Income Tax Act. It would have been a different fact if the A.O. had any discretion with respect to rate of interest and/or to levy any interest considering the facts and circumstances of the case. - As observed hereinabove, as such, A.O. had no such discretion and moment he determines the “assessed tax” and on the eventuality as mentioned in section 234B, i.e. (i) an assessee who is liable to pay advance tax .....

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egular assessment, on the amount equal to assessed tax, or, as the case may be, on the amount by which advance tax paid, as aforesaid, falls short of assessed tax. Under the circumstances and considering the subsequent decisions of the Hon'ble Supreme Court in the case of Anjum M.H. Ghaswala (2001 (10) TMI 4 - SUPREME Court) and in the case of Karanvir Singh Gossal (2012 (9) TMI 334 - SUPREME COURT ), question of law posed for consideration of this Court is to be answered in favour of the revenu .....

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y are disposed of by this Common judgement and order. 2.00. A common substantial question of law posed for consideration of this Court is that : Is it sine qua non for the Assessing Officer to mention / levy / charge interest under section 234B of the Income Tax Act (hereinafter referred to as the Act for short) in the assessment order before he consider / raises demand of the same in the notice issued under section 156 of the Act? OR Could Assessing Officer charge / levy interest in the notice .....

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; 1,14,49,920/-. That the Assessing Officer finalized the assessment and assessed the income at ₹ 3,16,81,450/-. 3.02. Feeling aggrieved and dissatisfied with the order passed by the Assessing Officer, the assessee preferred Appeal before the learned CIT(A). That the learned CIT(A) partly allowed the said appeal and also observed and passed an order that so far as the charging of the interest under section 234B of the Act is concerned, the same is consequential and therefore, the Assessing .....

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Assessing Officer has not charged any interest under section 234 of the Act and therefore, no such interest is chargeable. That the assessee relied upon the decision of Patna High Court in the case of Uday Mistanna Bhandar & Complex Versus Commissioner of Income Tax, reported in 137 CTR 376 (Patna) and decision of this Court in the case of Commissioner of Income Tax, Gujarat-II, Versus Bharat Machinery, Hardware Mart, reported in 136 ITR 875 (Gujarat). 3.05. That relying upon the aforesaid .....

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00. 4.00. That while admitting present Tax Appeal No.321 of 2000, following substantial question of law is raised / framed :- Whether the Appellate Tribunal has erred in law and on facts in holding that no interest under section 234B is chargeable as the same was not mentioned as chargeable in the order of assessment? 4.01. In other Appeals also the aforesaid substantial question of law arise and therefore, all these appeals are heard, decided and disposed of together by this common judgement an .....

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n the assessment order, charging interest under section 234B of the Act still the assessee is liable to pay interest on the assessed income and therefore, while issuing notice under section 156 of the Act, interest is mandatory and automatic and the assessee is liable to pay interest. 5.02. Mr.Mehta, learned counsel appearing on behalf of the revenue has further submitted that the Hon'ble Supreme Court in the case of CIT Versus Anjum M.H. Ghaswala, reported in [2001] 252 ITR 1 and in the cas .....

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ned counsel appearing on behalf of the revenue has also relied upon the decision of the Delhi High Court in the case of Commissioner of Income Tax, Delhi-IV Versus Insilco Ltd., reported in [2010] 321 ITR 105 (Delhi). It is submitted that in the aforesaid case, after the matter was remanded by the Hon'ble Supreme Court, the Delhi High Court has held that non-mentioning of section 234B of the Income Tax in the assessment order and straightway charging interest in the computation sheet would n .....

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of the Hon'ble Supreme Court in the case of Joint Commissioner of Income Tax, Mumbai Versus Rolta India Ltd., reported in 330 ITR 470 (S.C.), more particularly para 6. 5.07. Mr.Mehta, learned counsel appearing on behalf of the revenue has also relied upon the decision of the Kerala High Court in the case of Commissioner of Income Tax Versus R. Ramalingair reported in [2000] 241 ITR 753, more particularly para 5 to 7 and has submitted that as observed by the Kerala High Court, liability to p .....

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t in the case of Rachi Club Ltd. (supra) came to be considered by the Hon'ble Supreme Court in the subsequent decisions in which it is specifically held that charging of interest is consequential, mandatory and automatic. 5.09. Mr.Mehta, learned counsel appearing on behalf of the revenue has further submitted that as such notice under section 156 of the Act is consequent to section 143(3) of the Act and as such it is a notice of demand. It is submitted that notice under section 156 of the Ac .....

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the subsequent decisions Civil Suit has held that the interest is not only mandatory but is also automatic, even in absence of any specific order passed by the Assessing Officer in the order of assessment, charging interest under section 234B of the Act, assessee is liable to pay interest under section 234B of the Act. 5.11. Mr.Mehta, learned counsel appearing on behalf of the revenue has further submitted that while passing assessment order under section 143(3) of the Act, Assessing Officer is .....

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ered by the Hon'ble Supreme Court in the case of CIT Versus Anjum M.H. Ghaswala, reported in [2001] 252 ITR 1, even Patna High Court in the case of Rachi Club Ltd. (supra) and even the Hon'ble Supreme Court in the appeal against the order passed by the Patna High Court in the case of Rachi Club Ltd. (supra) had not considered the decision of the Hon'ble Supreme Court in the case of Kalyan Kumar Ray Versus CIT, reported in [1996] 191 ITR 645. 5.14. Mr.Mehta, learned counsel appearing .....

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fically observed and held that interest leviable under section 234B of the Act is mandatory and automatic. Submitting accordingly, it is requested by Mr.Mehta, learned counsel appearing on behalf of the revenue to answer the substantial question of law in favour of the revenue and against the assessee, by holding that it is not sine qua non for the Assessing Officer to mention / levy / charge interest under section 234B of the Act in the assessment order before the raises demand of the same in t .....

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Club (supra) (222 ITR 44) affirmed by the Hon'ble Supreme Court. It is vehemently submitted that the Hon'ble Supreme Court in the decision in the case of Rachi Club Limited (Supra) [247 ITR 210 (S.C.)] decided two Civil Appeals i.e. Civil appeal No.10360 of 1998 and Civil Appeal Nos.145 to 149 of 1997. It is submitted that the aforesaid appeals arose out of the revenue s appeal against the order passed by the Patna High Court in the case of Rachi Club Ltd. (supra) [222 ITR 44 (Patna)]. I .....

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247 ITR 210, the Full Bench of the Patna High Court also put note of the dismissal of the Civil Appeal by the Hon'ble Supreme Court, which was against the decision of the Division Bench in the case of Rachi Club Ltd. reported in 222 ITR 44. It is submitted that the Full Bench of the Patna High Court in the case of Tejkumari (supra) has specifically observed that the issue is already concluded by the Division Bench in Rachi Club Ltd. (supra) and the same has been affirmed by the Hon'ble .....

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Court by dismissing the Civil Appeals in a judgement reported in [247 ITR 209 (S.C.)] and therefore, it is requested to answer the question raised in the present appeals in favour of the assessee and against the revenue. 6.01. It is vehemently submitted by Mr.Soparkar, learned advocate appearing on behalf of the assessee that the decision of the Hon'ble Supreme Court in the case of Rachi Club Ltd. (supra) reported in [247 ITR 209 (S.C.)] is a Three Judge Bench decision and is a judgement of .....

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he parties and observing that the appeal has no merit. It is submitted that, therefore, such an order attracts Article 141 of the Constitution of India which provides that law declared by the Hon'ble Supreme Court shall be binding on all courts within the territory of India. 6.02. In support of his above submission, Mr.Soparkar, learned advocate appearing on behalf of the assessee has heavily relied upon the following decisions :- (1) Kunhayammed - 245 ITR 360 (S.C.) ; (2) Collector of Custo .....

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h it does not lay down any contrary view than the law laid down by the Hon'ble Supreme Court in the case of Rachi Club Ltd. (supra). It is submitted that as such no contrary view has been taken by the Hon'ble Supreme Court to that of the view taken in decision in the case of Rachi Club Ltd. (supra) while deciding the question in Anjum M. H. Ghaswala (supra). 6.04. Mr.Soparkar, learned advocate appearing on behalf of the assessee has submitted that the Hon'ble Supreme Court in the cas .....

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245BA of the Act. It is submitted that while coming to this conclusion, the Commission held that the constitution of the Commission is based on the concept of compromise and settlement and hence it has necessary powers to waive or reduce interest even if statutorily mandated, in view of wordings of section 245D(6) of the Act. It is submitted that, it was further held that in view of the definition of the term Income Tax Authority under section 245A(D), Commission being an Income Tax Authority ha .....

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der section 234A, 234B or 234C, in any case that arises for settlement before the Commission? If so, would this waiver of interest be in accordance with provisions of the Act as mandated in sub-section (4)? It is submitted that, thus, the Hon'ble Supreme Court was not seized with the question regarding charging of interest under section 234A/B/C in absence of levy / charge in the body of assessment by the Assessing Officer under section 143(3) / 144 of the Act. It is further submitted that e .....

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of the Hon'ble Supreme Court in the case of Rachi Club Ltd. (supra) being relevant and applicable law and Five Judges decision of the Hon'ble Supreme Court in the case of Anjum M. H. Ghaswala (supra) being not relevant for that question. 6.06. In support of his above submission, Mr.Soparkar, learned advocate appearing on behalf of the assessee has drawn attention of the Court to the following decisions of the Allahabad High Court, Himachal Pradesh High Court, Uttarakhand High Court and G .....

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hough judgement in the case of Anjum M. H. Ghaswala was very much available by that time, it was rightly not pointed out by the revenue and not examined by the Bench, the same being not relevant to the issue in hand. 6.08. Mr.Soparkar, learned advocate appearing on behalf of the assessee has further submitted that reasons on merits why above High Courts have held the issue in favour of the assessee is that even if any provision of law is mandatory and provides for charging for tax or interest, t .....

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aring on behalf of the assessee has further submitted that the assessment order must contained imposition of interest and only thereafter a notice of demand could be issued under section 156 of the Act. It is submitted that a notice of demand is somewhat like a decree in a Civil Suit which must follow the order. It is submitted that when the judgement in a Civil Suit does not specify any amount to be recovered, decree could not contain such amount. It is submitted that similarly when the assessm .....

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he Return is not filed within time or if advance tax is not paid within time, then the assessee is liable to pay interest and the payment of interest is mandatory. It is submitted that, however, if the Assessing Officer or the appellate authority does not pass order for payment of interest, assessee cannot be directed to pay interest by the demand notice. It is submitted that the Assessing Officer virtually acts like a judicial officer and if he passes a wrong order and not pass order to levy in .....

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of the revenue, is throughly misplaced. It is submitted that the decision of the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra) shall not be applicable with respect to the question raised in the present appeals. It is submitted that the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra) was seized with the question as to Whether levy of interest under section 234A/B is mandatory or not? It is submitted that before the Hon'ble Supreme Court there w .....

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sessing Officer to specifically recite in the order of assessment that penalty proceedings should be initiated is mere observation / obiter dicta and not having any binding effect on subsequent proceedings. 6.12. In support of his above submission, Mr.Soparkar, learned advocate appearing on behalf of the assessee has heavily relied upon the following decisions of the Hon'ble Supreme Court : (1) Deepak Bajaj Versus State of Makarashetra - 2009 SC 625 (para 7 to 16); (2) Hardeep Singh Sohal Ve .....

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Anjum M. H. Ghaswala (supra); (2) in the case of Karanvir Singh Gossal (supra) and in the case of Rachi Club Ltd. (supra) came to be considered by the Allahabad High Court in the case of M/s. Oswal Exports Company. It is submitted that after analyzing the aforesaid three decisions of the Hon'ble Supreme Court Allahabad High Court has observed and held that decision of the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra) does not change position of law as propounded in .....

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l proceedings are required to be undertaken, it is not necessary not obligatory for the Assessing Officer to direct initiation of penal proceedings and that penal proceedings would be initiated without a specific direction from the Assessing Officer. Relying upon the aforesaid decision of the Allahabad High Court, it is requested to take the similar view. 6.14. Mr.Soparkar, learned advocate appearing on behalf of the assessee has further submitted that even the interpretation of sections 143(3) .....

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arly suggests that the notice of demand does not levy / charge any tax. It is submitted that it is only that a liability to pay tax arises at the time of service of notice. The quantum of such liability is determination by an order only. That the notice perse does not increase or decrease the quantum of liability that is found in the order. 6.15. It is submitted that, therefore, before any interest is demanded while issuing notice under section 156 of the Act, reference of charging interest unde .....

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st under section 234B was to be sustained. It is further submitted that in the aforesaid decision, the Hon'ble Supreme Court has not held that the decision of the the Hon'ble Supreme Court in the case of Rachi Club Ltd. (supra) in any way overruled by the decision in the case of Anjum M. H. Ghaswala (supra). It is submitted that, therefore, combined reading of decision in the case of Rachi Club Ltd. (supra) and Bhagat Construction Pvt. Ltd. (supra) leads to a conclusion that as long as l .....

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mitted by Mr.Soparkar, learned counsel and therefore, the same is not repeated. By making above submissions and relying upon the above decisions, it is requested to answer the substantial question of law raised in the present appeals in favour of the assessee and against the revenue. 7.00. Heard the learned advocates appearing on behalf of the respective parties at length. 7.01. As narrated hereinabove, substantial question posed for consideration of this Court is Is it sine qua non for the Asse .....

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d, which are as under : Section 234B. Interest for defaults in payment of advance tax. (1) Subject to the other provisions of this section, where, in any financial year, an assessee who 15 liable to pay advance tax under section 208 has failed to pay such tax or, Where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of [one per cent.] for every month or part .....

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rmined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,- (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside Indi .....

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section 147 or section 153A], the assessment so made shall be regarded as a regular assessment for the purposes of this section. [Explanation 3. In Explanation 1 and in sub-section (3), tax on the total income determined under sub-section (1) of section 143" shall not include the additional income-tax, if any, payable under section 143.] (2) Where, before the date of [determination of total income under sub-section (1) of section 143 or] completion of a regular assessment, tax is paid by th .....

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rder of reassessment or recomputation [under section 147 or section 153A], the amount on which interest was payable under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of [one per cent.] for every month or part of a month comprised in the period commencing on the day following [the date of determination of total income under sub-section (1) of section 143 [and where a regular assessment is made as is referred to in sub-section (1) following the dat .....

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tion 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount on which interest was payable under sub-section (1) or subsection (3) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and- (i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable and such notice of dem .....

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on (1) of Section 142, Such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the tota1 income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the as .....

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the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to the assessee in a case where the 1055 declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him: Provided further that no intimation .....

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to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgment of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a). *(1A) For the purposes of processing of returns unde .....

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pply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued [after [the 31st day of March, 2012]]. (1C) Every notification issued under sub-section (IB), along with the scheme made under sub-section (1A), shall, as soon as may be after the notification is issued, be laid before each House of Parliament] [(1 D) Notwithstanding anything contained in subsection (1), the processing of a return shall .....

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d require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the assessee may rely, in support of such claim: [Provided that no notice under this clause shall be served on the assessee on or after the 1st day of June, 2003;] (ii) notwithstanding anything contained in clause (i), if he considers it necessary or expedient to ensure that the assessee has not under-stated the income or has not computed excessive loss .....

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lause (i) of sub-section (2), or as soon afterwards as may be, after hearing such evidence and after taking into account such particulars as the assessee may produce, the Assessing Officer shall, by an order in writing, allow or reject the claim or claims specified in such notice and make an assessment determining the total income or loss accordingly, and determine the sum payable by the assessee on the basis of such assessment; (ii) issued under clause (ii) of sub-section (2), or as soon afterw .....

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ociation] referred to in clause (21) of section 10; (b) news agency referred to in clause (ZZB) of section 10; (c) association or institution referred to in clause (23A) of section 10; (d) institution referred to in clause (23B) of section 10; (e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (V) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-c .....

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has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be, by such [research association], news agency, association or institution or fund or trust or university or other educational institution or any hospital, or other medical institution, where in his view such co .....

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to in clause (ii) and clause (iii) of sub-section (1) of section 35 are not being carried out in accordance with all or any of the conditions subject to which such university, college or other institution was approved, he may, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned university, college or other institution, recommend to the Central Government to withdraw the approval and that Government may by order, withdraw the approval and forwar .....

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or not the approval granted to such trust or institution or notification issued in respect of such trust or institution has been withdrawn or rescinded.] [(4) Where a regular assessment under sub-section (3) of this section or section 144 is made,- (a) any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment; (b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refunda .....

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rmined to be payable by the assessee or by the deductor under sub-section (1) of section 143 or sub-section (1) of section 200A, the intimation under those sub-sections shall be deemed to be a notice of demand for the purposes of this section.] 7.03. It is the case on behalf of the revenue that after the decisions of the Patna High Court in the case of Rachi Club Ltd. (supra) and in the case of Tejkumari (supra), the Hon'ble Supreme Court in the case of Anjum M.H. Ghaswala (supra) and in the .....

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to rate of interest, even if in the order of assessment no demand of interest can be raised in the notice issued under section 156 of the Act be raised. On the other hand, it is the case on behalf of the assessed that in view of the decision of the Patna High Court in the case of Rachi Club Ltd. (supra) which was confirmed by the Hon'ble Supreme Court by dismissing the SLP preferred against the decision of the Patna High Court in the case of Rachi Club Ltd., the view taken by the Patna High .....

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atna High Court in the case of Rachi Club Ltd. (supra), against which SLP was preferred, however the said SLP was dismissed and also considered the subsequent decision of the Patna High Court in the case of Tejkumari (supra) and subsequent decisions of the Hon'ble Supreme Court in the case of Anjum M.H. Ghaswala (supra) and in the case of Karanvir Singh Gossal (supra) and other decisions of other High Courts referred to hereinabove, which are relied upon by the learned counsel appearing on b .....

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in the case of Rachi Club Ltd. (supra) is a decision of bench of Hon ble Three Judges, however, the decision of the Hon'ble Supreme Court in the case of Anjum M.H. Ghaswala (supra) is decision of a bench consisting of Hon ble Five Judges. It is also required to be noted that even the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra) also took note of its earlier decision in the case of Rachi Club Ltd. (supra). Therefore, while deciding the question posed for consideratio .....

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the case of Anjum M.H. Ghaswala (supra), it is held by the Hon'ble Supreme Court that if interest is leviable under section 234B/234C, then in such a case that levy is mandatory and compensatory in nature. Under the circumstances, subsequent decision of the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra), in which the Hon'ble Supreme Court has considered its earlier decisions in the case of Rachi Club Ltd. (supra) and in the case of Anjum M.H. Ghaswala (supra), is .....

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s of the Settlement commission constituted under section 245B and as to jurisdiction to reduce or waive interest chargeable under section 234A, 234B and 234C while passing orders of settlement under section 245D(4). 7.07. The learned counsel appearing on behalf of the assessee has also tried to distinguish the decision of the Hon'ble Supreme Court in the case of Karanvir Singh Gossal (supra) on the ground that the Division Bench of the Hon'ble Supreme Court has erred in holding that Five .....

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on 234B is mandatory and compensatory in nature. Therefore, as observed by the Hon'ble Supreme Court in the aforesaid decisions that once the levy of interest under section 234B is mandatory and recitation by the A.O. directing institution of penalty proceedings is not obligatory and penal proceedings could be initiated for such default without any specific direction from the A.O. In view of the above, the substantial question of law posed for consideration of this Court is required to be co .....

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of assessment determining the sum payable by the assessee on the basis of such assessment. 7.10. Section 234B provides levy of interest for defaults in payment of advance tax. Section 234B provides that subject to other provisions of the said section, where, in any financial year, an assessee who is liable to pay advance tax under section 208 has failed to pay such tax, or, where advance tax paid by such assessee under the provisions of section 210 is less than 90% of the assessed tax , assesse .....

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tion 1 to section 234B assessed tax means tax on the total income determined under sub-section (1) of section 143 and where regular assessment is made, tax on the total income determined under such regular assessment. 7.11. As observed hereinabove, levy of interest under section 234B of the Income Tax Act is held to be mandatory and automatic and at the rate prescribed and mentioned under section 234B of the Income Tax Act. The A.O. has no discretion to levy any interest other than right of inte .....

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ifying sum to be payable. 7.13. Now, so far as the initiation of penal proceedings is concerned, in the case of Karanvir Singh Gossal (supra), the Hon'ble Supreme Court has specifically observed and held that recitation by the A.O. directing initiation of penal proceedings is not obligatory and the penal proceedings could be initiated for such default without a specific direction from the A.O. 7.14. Considering the totality of the facts and on conjoint reading of the aforesaid provisions of .....

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calculated, we are of the opinion that even in absence of any direction by the A.O. while passing assessment order under section 143(3) of the Income Tax Act, which according to under section only for determining assessed tax, there can be demand of levy and demand of interest under section 156 of the Income Tax Act. It would have been a different fact if the A.O. had any discretion with respect to rate of interest and/or to levy any interest considering the facts and circumstances of the case. .....

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od from the first day of April next following such financial year to the date of determination of total income under sub-section (1) of section 143 and (ii) where regular assessment is made to the date of such regular assessment, on the amount equal to assessed tax, or, as the case may be, on the amount by which advance tax paid, as aforesaid, falls short of assessed tax. Under the circumstances and considering the subsequent decisions of the Hon'ble Supreme Court in the case of Anjum M.H. G .....

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d. (supra). However, in view of the aforesaid two subsequent decisions of the Hon'ble Supreme Court and for the reasons stated hereinabove, in respectful submission we are not in agreement with the contrary view taken than what we are taking in the present case. 7.16. Similarly, the submissions on behalf of the assessee that the decision of th Patna High Court in the case of Rachi Club Ltd. (supra) came to be merged in the decision of the Hon'ble Supreme Court in view of the dismissal of .....

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