TMI Blog2002 (11) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals) directed the Assessing Officer to charge interest under section 234B of the Act up to the date of determination of income under section 143(1)(a) of the Act. It is settled law that interest is levied under section 234B on the basis of returned income and not on the basis of the assessed income. The Tribunal was right in setting aside the finding of the Commissioner of Income-tax (Appeals) in this regard and remanding the case back to the assessing authority for this purpose. - - - - - Dated:- 12-11-2002 - Judge(s) : N. K. SODHI., VIRENDER SINGH. JUDGMENT The judgment of the court was delivered by N.K. SODHI J.-This appeal by the Revenue is directed against the order dated March 14, 2001, passed by the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parts because the area was huge and could not be sold in one go. In this view of the matter, the Commissioner of Income-tax (Appeals) held that the income earned by the assessee was taxable under the head "Capital gains". Since the land was held by the assessee for more than three years the profit was taxable under the head "Long-term capital gains". He allowed the indexed cost of acquisition. Not satisfied with the order of the Commissioner of Income-tax (Appeals) the Department filed an appeal before the Tribunal. It was reiterated before the Tribunal that the assessee had a profit motive in selling the land in different parcels and, therefore, the income derived therefrom was from an adventure in the nature of trade. This argument was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al error could be pointed out by the Department. In this view of the matter, we are of the opinion that no substantial question of law arises from the order of the Tribunal so as to warrant the entertainment of this appeal. The other issue raised before the Tribunal was in regard to the levy of interest under section 234B of the Act. The Commissioner of Income-tax (Appeals) directed the Assessing Officer to charge interest under section 234B of the Act up to the date of determination of income under section 143(1)(a) of the Act. It is settled law that interest is levied under section 234B on the basis of returned income and not on the basis of the assessed income. The Tribunal was right in setting aside the finding of the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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