1993 (3) TMI 86

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....g question has been referred at the instance of the Revenue by the Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the interest charged under section 216 of the Income-tax Act, 1961 ?" We have heard both sides. The assessee, a limited company, derives income from the m....

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....l, the Commissioner of Income-tax, holding that the assessee was not in default, deleted the charge of interest. On appeal by the Revenue, the Tribunal confirmed the order of the Commissioner stating that the Inspecting Assistant Commissioner did not pass a speaking order, and did not give reasons for its finding, and that, on the other hand, the Commissioner of Income-tax (Appeals ), after consid....

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....e been paid, having regard to the aggregate advance tax actually paid during the year ; and (ii) in the case referred to in clause (b), for the period during which the payment of advance tax was so deferred. " Obviously, the Inspecting Assistant Commissioner must have thought that clause (a) was attracted in the instant case and there Was underestimation of the tax payable by the assessee and t....

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....aspect ; he appears to have charged interest without being conscious of the fact that the power to charge interest is discretionary. He appears to have thought that he was bound to charge interest. He has committed a serious error of law. It is true that the Commissioner of Income-tax (Appeals) being the first appellate authority could have considered the facts and circumstances of the case to see....