2011 (1) TMI 909

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.....   1. This appeal has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (for short, 'the Act') against the order of the Income Tax Appellate Tribunal, Delhi bench "SMC" New Delhi (in short, 'the Tribunal') dated 31.10.2007 in ITA No.3625/DEL/2007 for the assessment year 1992-93, raising following substantial questions of law:-   "i) Whether on the facts ....

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....ory interest. The Assessing Officer issued notice under section 148 of the Act alleging that the income received by way of capital gains escaped assessment. Accordingly, the assessment was made and demand raised included interest under sections 234A and 234B of the Act. The said demand was upheld by Commissioner of Income Tax (Appeals) {CIT(A} but set aside by the Tribunal and matter was remanded ....

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....pensation receivable from Land Acquisition Officer. The dispute was settled only on 30th July 1996. Thus the assessee is neither liable to file return of income nor required to pay advance tax on the due date for assessment year 1992-93. In the circumstances, the assessee cannot be saddled with liability of interest under section 234A as well as interest under section 234B. It is to be noted that ....

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.... inspite of service.   4. Learned counsel for the revenue submits that levy of interest was mandatory and the Tribunal erred in observing that the assessee had no liability to pay tax or to file return till proceedings were pending in the High Court. In view of amendment to section 45 and judgment of the Hon'ble Supreme Court in CIT v. Ghanshyam ,(2009) 315 ITR 1, taxability of the amount ....