1997 (9) TMI 60

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.... MATHUR C. J.---The petitioners by this writ petition have challenged the validity of section 234A of the Income-tax Act, 1961, and have also challenged levy of interest, vide annexures P-4, P-5, P-6, P-7, P-8 and P-9 and orders passed under section 264, vide annexures P-14, P-15 and P-16. The brief facts giving rise to this writ petition are that the petitioners were assessed by the Deputy Com....

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....y accepted by the Assessing Officer with small variation. Thereafter the petitioners were assessed and notices of demand were sent charging interest by respondent No. 2, vide annexures P-4, P-5 and P-6 and computing sheets, annexures P-7, P-8 and P-9, respectively. From the computing sheets, it appears that respondent No. 2 had charged interest under sections 234A, 234B and 234C of the Act of 1961....

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....oner are placed on record as annexures P-14, P-15 and P-16. Hence, the present writ petition has been filed challenging the validity of section 234A of the Act of 1961 as being violative of articles 14 and 19(1)(g) of the Constitution of India. We have heard learned counsel for the parties and perused the record. So is section 234A of the Act of 1961 is concerned, it is only a regulatory measur....

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....llected at source. The idea behind this section is that the assessee should see that he files a return of income in time and that the failure in filing of the return can be levied with interest so as to compensate the loss occasioned to the Revenue which the Revenue would have otherwise received if the return had been filed in time. This provision has already been upheld by three High Courts in th....