https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=752239 https://www.taxtmi.com/caselaws?id=752239 Levy of interest u/s 234A and 234B - Interest for defaults in furnishing return of income - Determination of date of regular assessment - obliteration of demand consequent to an assessment being set aside - original assessment stands set aside in the appellate proceedings for fresh assessment - as original demand surviving no longer, the Revenue claims the subsequent assessment as the regular assessment, while the assessee claims it to be the first one HELD THAT:- As explained in CIT vs. Prakash Chand Lunia [ 2023 (4) TMI 1057 - SUPREME COURT] for a precedent to be binding there has to be a conscious consideration of an issue involved (Also see - Hussain Bhai Ors. v. [ 1971 (4) TMI 1 - SUPREME COURT] . The decision in Modi Industries Ltd. [ 1995 (9) TMI 324 - SUPREME COURT] settles the issue qua the date of regular assessment , clarifying it to be for the purpose of determination of interest payable to or, as the case may be, by the assessee, i.e., ss. 214, 215, also adverting to ss. 243 and 244 - The said provisions are no longer operative, with, further, there being legislative changes, the legal import of which is to be judicially determined. The decision in Mahesh Investments . [ 2020 (10) TMI 428 - KARNATAKA HIGH COURT] and by the Tribunal in Santhimadom Herbal City Trust [ 2013 (7) TMI 1219 - ITAT COCHIN] stand rendered de hors the same. There being no consideration of the changed legal scenario, we only consider it fit and proper to restore this issue, i.e., computation of interest u/ss. 234A 234B, back to the file of the ld. CIT(A) for a consideration afresh, who shall adjudicate thereon per a speaking order after allowing adequate opportunity of hearing to the parties before him, in accordance with law, considering all the decisions that may be relied upon by them, or that he may wish to rely upon, confronting them therewith. All contentions qua this issue, whether raised and considered in this order or not, are, without reservation, open to both the sides. We may not be construed as having expressed any final view in the matter, save as to the instant appeals, as indeed the assessments from which they arise, as being maintainable. Two, we may clarify that the nature of levy as mandatory, as well as compensatory, and of the default being a continuing one, is not in dispute, so that demand, where paid, would automatically close the interest, even as found in CIT v. Pranoy Roy [ 2008 (9) TMI 150 - SUPREME COURT] - The compensatory aspect, which also prevailed with the Apex Court in Modi Industries Ltd. [ 1995 (9) TMI 324 - SUPREME COURT] stands met by the extant law providing for interest up to the date of grant of interest; a statutory confirmation of the interest being compensatory. The dispute concerns only the aspect of date of regular assessment in the given facts and circumstances of the case, and the law in the matter. Assessee s appeals are allowed for statistical purposes. Case-Laws Income Tax Thu, 02 May 2024 00:00:00 +0530