1997 (11) TMI 61

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..... MOHAMMED J.---The question referred to us for decision in this case is as follows : "Whether the Tribunal is bound to consider all the provisions of section 214 including section 214(1A) when the assessee did not refer to section 214(1A) in the course of the argument and the case proceeded only on the provisions of section 214(1) of the Income-tax Act, 1961 ?" This income-tax reference cas....

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....did not allow any interest under section 214(1A). On appeal, the Commissioner of Income-tax (Appeals) directed the Assessing Officer to grant interest under section 214. However, the Revenue went up in appeal. But the Tribunal following the Full Bench decision of this court in CIT v. G.B. Transports [1985] 155 ITR 548 and the decision of the Bombay High Court in CIT v. Carona Sahu Co. Ltd. [1984] ....

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....edrafted by the Tribunal. That is how the matter is coming before us. The only question is whether the Tribunal is bound to take note of the provision contained in sub-section (1A) of section 214 and to apply the same while deciding the quantum of interest. The said provision was there in the statute when the question came up for decision before the Tribunal. Even though the assessee did not sp....

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....fficer of his duty to apply section 24 in an appropriate case". It is difficult for us to say that the principle emerging from the above decision cannot be extended to the cases before the other authorities under the Income-tax Act. We are of the view that the above principle can equally be applied to the cases coming before the Income-tax Appellate Tribunal. Also refer to the decision of this ....