Requirement of an order levying interest u/s 216.

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....tion that "interest under section 216 is levied" in the assessment order. The order under section 216 is specifically appealable vide sub-clause(m) of Section 216. It is, therefore, obvious that the Income-tax Officer's order directing an assessee to pay interest under section 216 should be a speaking order, giving his reasons for coming to the conclusion that such interest is leviable to enable t....

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....sing authority should go into the mens rea of the assessee and proper conclusions have to be reached after hearing him on the circumstances under which he committed such defaults. It is only on such a finding that under-estimation/wrongful deferment has been made by an assessee that the Income-tax Officer can levy interest under section 216. Since the finding rests on the Income-tax Officer's appr....