Interest on delayed payment upheld even though penalty was not leviable on the same facts

Interest on delayed payment was sustained because the issue of interest had been properly raised and the Tribunal treated it as distinct from penalty liability. The earlier denial of penalty had already been affirmed, and that position was maintained on the same facts. Applying the cited authorities, the Tribunal held that penalty was not leviable, but interest remained payable for the delayed period. The appeal was therefore disposed of by upholding interest liability while confirming denial of penalty.

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Issues: Whether interest was payable for delayed payment, while penalty remained not leviable.

Analysis: The Tribunal noted that the earlier order denying penalty had already been affirmed and that the matter presently concerned only interest for the delayed period. On the basis of the ground of appeal filed before the High Court, it was held that the Revenue had raised the issue of interest. Relying on the cited authorities, the Tribunal maintained its earlier view that penalty was not leviable, but held that interest was payable for the delayed payment.

Conclusion: Interest on the delayed payment was held leviable against the assessee, while penalty was held not leviable.

Final Conclusion: The appeal was disposed of by sustaining the denial of penalty and upholding liability to pay interest for the delayed period.

Ratio Decidendi: Where the issue of interest for delayed payment is properly raised, liability to pay interest can be sustained even though penalty is not leviable on the same facts.

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