RAM KUMAR TYAGI,GHAZIABAD vs. ITO, WARD-2(2), GHAZIABAD
Before: SHRI YOGESH KUMAR US, & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the order of the CIT(A), Ghaziabad dated 02.01.2018 pertaining to A.Y 2008-09. 2. The solitary grievance raised emanating from the 5 grounds of appeal of the assessee is against the order u/s 154 of the Income-tax
[A.Y 2008-09]
Act, 1961 [the Act, for short] passed by the Assessing Officer where the assessee has challenged the charging of interest u/s 234A and 234B of the Act.
At the very outset, we find that the co-ordinate bench in assessee’s own case in the A.Y 2008-09 has decided the appeal partly in favour of the assessee and partly in favour of the Revenue in ITA No. 2676/DEL/2016 vide order dated 13.08.2025. The co-ordinate bench has deleted certain additions while confirming certain other additions.
The issue at hand is levying of interest u/s 234A and 234B of the Act by the Assessing Officer on the assessed income is legally valid under the provisions of section 154 of the Act or not.
We find that the ld. CIT(A) has, following the Hon'ble Supreme Court in the case of Anjum MH Ghaswala 252 ITR 1, held that interest to be levied u/s 234A and 234B of the Act are mandatory in nature. Further, the ld. CIT(A) pointed out that the Assessing Officer has in the assessment order had directed to charge interest as per law marking a distinguishable feature from the decision of the Hon'ble Delhi High Court in the case of Oswal Exports. [A.Y 2008-09] The assessee is also directed to provide necessary information/ documents as required by the authorities.”
In the result, appeal of the assessee in ITA No. 3002/DEL/2018 is allowed for statistical purposes.
The order is pronounced in the open court on 17.10.2025. [YOGESH KUMAR U.S.]
[NAVEEN CHANDRA]
JUDICIAL MEMBER
ACCOUNTANT MEMBER
Dated: 17th OCTOBER, 2025. VL/