TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1315
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.... (through V.C.). Mr. Aman Bhisla, JCIT, Karnal (through V.C.). JAGMOHAN BANSAL, J. (ORAL) 1. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of order dated 07.12.1998 whereby joint commissioner of Income Tax, Karnal has raised demand of interest to the tune of Rs. 74,68,389/- under Section 220(2) of Income Tax Act, 1961 (for short '1961 Act'). 2. The petitioner is a cooperative society registered under Haryana Co-operative Societies Act, 1984. The respondent vide order dated 08.12.1994 framed assessment under Section 143(3) of 1961 Act whereby demand of Rs. 1,24,40,631/- was created. The respondent issued notice dated 14.12.1994 under Section 156 whereby petiti....
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....hority as well as orders passed by Appellate Tribunal. The petitioner complied with notice issued under Section 156 of 1961 Act which was issued after demand created by Assessing Authority. The respondent served fresh notice under Section 156 of 1961 Act after orders of Appellate Tribunal. As per Section 220(2) of 1961 Act, interest is payable if liability is not discharged within 30 days of notice under Section 156. The petitioner had complied with first notice issued under Section 156 and First Appellate Authority set aside order passed by Assessing Authority, thus, first notice ceased to exist. The respondent issued second notice under Section 156 after orders passed by Appellate Tribunal. The liability of interest commences on the expir....
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.... "7. Circulars and instructions issued by the Board are no doubt binding in law on the authorities under the respective statutes, but when the Supreme Court or the High Court declares the law on the question arising for consideration, it would not be appropriate for the court to direct that the circular should be given effect to and not the view expressed in a decision of this Court or the High Court. So far as the clarifications/circulars issued by the Central Government and of the State Government are concerned they represent merely their understanding of the statutory provisions. They are not binding upon the court. It is for the court to declare what the particular provision of statute says and it is not for the executi....
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....f the service of the notice at the place and to the person mentioned in the notice : Provided that, where the Assessing Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty days aforesaid is allowed, he may, with the previous approval of the Joint Commissioner, direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty days aforesaid, as may be specified by him in the notice of demand. (2) If the amount specified in any notice of demand under section 156 is not paid within the period limited under subsection (1), the assessee shall be liable to pay simple interest at one per cent. for every month or pa....
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....ith interest. The Appellate Tribunal allowed appeal of the Revenue, resultantly petitioner became liable to pay tax along with interest which was already paid to it. The respondent issued notice under Section 156 on 07.09.1998 whereby an attempt was made to give effect to orders of Appellate Tribunal. The respondent is of the opinion that second notice issued under Section 156 has no significance and interest under Section 220(2) is payable as per first notice under Section 156. 11. In Section 156(1), expression "any order passed under this Act" has been used. In the said Section, it has also been provided that when any tax or interest is payable in consequence of any order. It means liability must arise in consequence of orders passed u....