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TMI Blog1979 (11) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... principal value of the estate of the deceased was valued at Rs. 14,28,450. The total tax payable was calculated at Rs. 2,58,840.41 and after giving deduction to the amount that had been paid under s. 57, the balance payable was Rs. 2,18,600.48. This was directed to be paid on or before January 31, 1967, and demand notice and challan were also sent along with the copy of the order. This order did not contain any direction in regard to the payment of interest. There was an appeal against this assessment to the Appellate CED. On the ground that the duty bad been allowed to be in arrears, he caused notices to be issued under s.46(5A) of the Indian I.T. Act. The petitioner filed a writ petition, W. P. No. 1736 of 1967 challenging the notices iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebruary 17, 1975, which is challenged in this writ petition. The petitioner had preferred a further appeal to the Income-tax Appellate Tribunal against the order of the Appellate CED. The Tribunal decided the appeal on December 21, 1974. Some reliefs had been allowed to the accountable person. The order made on February 17, 1975, and impugned in this writ petition, was one made without taking into account the relief that had been granted by the Appellate Tribunal. The order, Ex. E, shows that the tax payable after giving deduction to the amount paid under s. 57 was Rs. 2,16,101.22 and the amount paid up amounted to Rs. 2,16,100.48. It was shown that the balance of estate duty payable was Rs. 0.74. A calculation of interest due was made an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty liability would get reduced considerably and, according to the rough calculation made by the learned counsel for the petitioner, the estate duty would be only about Rs. 1,25,610 or something less than that if certain rebates are properly calculated. It is contended by Sri Sarangan, learned counsel for the petitioner, that the proceedings taken by the respondent are without jurisdiction. His argument is that there was no mistake apparent on record which could be rectified by taking recourse to s. 61. There was no mistake on record as such and the E.D. Act does not prescribe an automatic imposition of interest on the duty payable. The only provision for imposing interest is to be found in s. 70 which consists of two clauses. It is as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act very soon after the assessment order and that had been challenged in this court in W.P. No. 1736 of 1967. Even at the time an order was made on March 28, 1972, which was challenged in W. P. No. 1579 of 1972, that purported to impose interest only under s. 70(2) and not under s. 70(1). There is nothing on record to show that there was any such satisfaction as is contemplated under s. 70(1) by the Asst. CED to make an order thereunder. As stated earlier, W.P. No. 1736/67 was disposed of on the consent of both the parties. That order did not make any provision for payment of interest. The Asst. CED did not himself make any order under s. 70 or stipulate for payment of any interest, subject to payment of which only, instalments were to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Prem Nath Khandelwal v. Assistant CED [1970] 77 ITR 949. That decision lays down that there must be an order of the Controller in regard to the payment of interest as required under s. 70 and without such an order, there was no liability to pay interest as the Act does not make any provision for payment of interest automatically. A further question that was canvassed before that High Court was whether the department can demand interest after all the duty levied had been paid up, because the duty was paid by instalments. The High Court held that no such demand could be made. It was observed that s. 70 was the only section providing for payment of interest and there was no other section and such interest does not begin to run unless the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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