2015 (7) TMI 413

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....lowing substantial question of law:- "8(i) Whether on the facts and in the circumstances of the case, the ITAT is right in law in holding that interest u/s 234A and 234B is to be levied on returned income instead of assessed income in view of the retrospective amendment made by the Finance Act, 2001 w.e.f. 01.04.1989?" 3. It is not necessary to consider the other questions of law raised in this appeal in favour of the appellant/revenue. On 14.02.2000, the Assessing Officer made an assessment order under Section 143(3) of the Act. He charged interest under Section 234-B not on the returned income, but on the assessed income. The Supreme Court in CIT Vs Ranchi Club Ltd., (2001) 247 ITR 209 (SC) had held that interest was chargeable on t....

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....artment filed an ITA-194-2001 against the order of the CIT (Appeals) dated 23.02.2001. On 06.12.2001, the CIT (Appeals) rectified the order dated 23.02.2001 by levying interest on the assessed income and not on the returned income. The respondent/assessee had also filed an appeal against the order dated 06.12.2001. The Tribunal by an order dated 25.08.2006 disposed of the appeals filed by both the parties, inter alia, by remanding the same to the CIT (Appeals). The CIT (Appeals) ultimately by an order dated 22.03.2010 held that interest would be chargeable on the assessed income and not on the returned income. This was a common order in both the proceedings, namely, in the appeal that had been filed by the assessee before the CIT (Appeal....

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....nd as held in J.K. Synthetics Ltd. Vs. CTO [1994] 94 STC 422 (SC), would be asking him to do the rare impossible? 4. Whether in view of the fact that the return of the appellant had been accepted under Section 143(1) of the Act, interest could be charged even on the basis of the amended Explanation when it specifically defines assessed tax as the tax on total income determined under sub-section (1) of Section 143 of the Act?" In paragraph 5, the Division Bench of this Court had in Raj Kumar Singal Vs Union of India (supra) upheld the vires of the Finance Act, 2001. The Division Bench set out the amendment introduced by the Finance Act, 2001. The Division Bench reproduced the observations of this Court in Raj Kumar Singal's case (supra....