COMMISSIONER OF INCOME TAX DEL vs. TEK CHAND
What did the High Court hold?
The Tribunal correctly deleted the interest charged under Sections 234A and 234B. This was based on the Supreme Court's affirmation of Patna High Court decisions stating that interest can only be levied if explicitly mentioned in the assessment order.
What were the facts?
The Revenue appealed against an ITAT order that deleted interest charged under Sections 234A and 234B. The ITAT relied on Supreme Court decisions which held that interest demand notices can only be issued if the assessment order directs the levy of interest.
What were the issues?
Whether interest under Sections 234A and 234B can be levied without a specific direction in the assessment order. Whether a substantial question of law arises from the ITAT's order.
Which sections of the Income-tax Act were involved?
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Cases cited in this judgment(3)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- V.M Salgaocar & Bros (P) Ltd. v. CIT27 citing247 ITR 210 · 2001 · HC
- CIT v. Ranchi Club Ltd.21 citing247 ITR 209 · 2001 · SC
- Ranchi Club v. CIT16 citing217 ITR 72 · 1996 · HC
1(a) Continuation Sheet U 21--1 Date I Orders ITHE 1 HIGH COURT OF DELHI AT NEW DELHI ITAi54/2002 COMMISSIONER OF INCOME.TAX DEL Appellant. Through Mrjagdish Rai Goel. Advocate. versus TEK CHAND Respondent Through MrP.CSharada. Advoca€e. CORAM: HON'BLE MR. JUSTICE D.K. JAIN HON'BLE MS. JUSTICE SHARDA AGGARWAL ORDER 0 21.082002 This is an appeal by the Revenue under Section 260A of the Income Tax Act, 1961(fo'r short the Act), challenging the order passed by the Income Tax Appellate Tribunal, Delhi Bench B (for short the TribUnal), dated 23 August 2001, deleting the interest charged under Section 2344 and 234of the Act '4- We find that while granting relief to the asséssee, the Tribunal has relied on the decision of t h e Supreme C o u r t in Cam..ssionerof .[nc..o.mel.a..Or • Vs.Ranc .h. .... ç.. ..ub d., (2001) 247 ITR 209, wherein two decisions of the Pat.na High Court mRanoh........Clu..Lt V. . c..o.m..m.A..si.p..tie.r....p.f . ,nc..o.m.eTa . (1996)217 ITR 72 and Uda............111.s.tann. .....ha...d c..o p.x,,s .ç..o.itis...Ap..tie........of ticome.Tax, (1996)222 IFR 44 have been affirmed, . In Uday Mistanna Bharidar and Complex (supra), while analysing the provisions of Section 234A, 234B Digitally Signed By:AMULYA Signature Not Verified
H.Ad.I(a) Continuation Sheet Orders 4 .p and 234C vis-vis Section 156 of the Act, it was held that . notice of demand claiming interest can be issued only when there is order in the assessment order levying interest. This.view has been upheld by the Apex Court in Ranchi Club Ltd.. (s'upra). It is pertinent to note that a ful1Bench of the Patna High Court in SnitJe.j....Kumar .. Q.r......... s ..o.mmisio... of ncpine Tax . Qr s.., (2001) 247 ITR 210 has again reiterated the view taken by the Diviion Benches in the afore-noted cases. Admittedly, in the present case there is no direction in the assessment order for charging of L. interest under Section 23.4A/ 2348 of the Act. '1.- In view of the afore-notéd authoritative pronouncements, no question of law, much less a substantial 'question of law arises from the 'order of the Tribunal, , Dismissed. AAAV SHARD 3 AUGUST 21, 2002 "Karla"
More judgments on Section 234A
- Vikas Ashokkumar Masand, Ahmedabad vs The Dy. Commissioner of Income Tax…ITA 3130/AHD/2026[A.Y. 2017-18]Status: Disposed19 Oct 2026
- Sarvjeet Singh Through Legal Heir Manjit… vs ITO Ward 1(1), AlwarITA 355/JPR/2025[2013-14]Status: Disposed16 Oct 2026AY 2013-14
- Parthasaradhi Mutually Aided Co-Operative… vs Income-Tax Officer, Ward-17(1), HyderabadITA 2322/HYD/2026[AY 2016-17]Status: Disposed16 Oct 2026
- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 2128/MUM/2025[2022-23]Status: Disposed16 Oct 2026AY 2022-23
- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 4558/MUM/2023[2021-22]Status: Disposed16 Oct 2026AY 2021-22
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