Section 234A to 234C Interest Payable If Assmt Order Silent: Allahabad & Uttaranchal High Courts

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Sat, May 19, 2012 at 10:12 AM
Subject: Message from EGroup of SolapurCAs No S. 234A to 234C Interest Payable If Assmt Order Silent: Allahabad & Uttaranchal High Courts
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. Awadh Hotels (P) Ltd (Allahabad High Court)

S. 234A, 234B & 234C interest, though mandatory, is not payable if AO does not direct it to be charged in assessment order

 

The AO passed a s. 143(3) assessment order in which he omitted to direct that interest u/s 234A, 234B & 234C should be levied. The Tribunal, relying on Ranchi Club Ltd 247 ITR 209 (SC) held that in the absence of a specific direction, interest was not leviable. Before the High Court, the department relied on the larger bench decision in Anjum M.H Ghaswala 252 ITR 1 (SC) and argued that as interest u/s 234A, 234B & 234C was mandatory, there was no need for the assessment order to specifically direct that interest should be charged. HELD dismissing the appeal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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