1999 (10) TMI 88

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.... 1b. That while allowing relief at '1', above the learned CIT(A) has ignored the fact that charging of the interest under s. 234B is mandatory." 2. We have heard the learned Departmental Representative for the Revenue. None appeared on behalf of the respondent-assessee. Hence we proceed to decide the appeal ex parte under r. 24 of the IT (Appellate Tribunal) Rules, 1963. 3. Stated briefly, the relevant and material facts for the disposal of these grounds of appeal are stated as under. 4. At the time of framing the assessment, interest under s. 234B of the Act was charged to the extent of Rs. 17,610. An application under s. 154 of the Act was moved requesting the AO to delete this interest contending that there was no liability to....

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....as kept pending because of dispute which was ultimately settled on 30th March, 1990, in the presence of witnesses. He was informed on 2nd April, 1990, regarding the settlement of dispute in his favour and car was handed over subsequently. Thus, there was no finality about the winning of the Maruti car as a prize before 31st March, 1990, and hence liability to pay advance tax under s. 234B of the Act was not called for. 6. The learned CIT(A) while allowing the appeal of the assessee directed the AO to make the necessary rectification and delete the interest charged under s. 234B of the Act and made the following observations: "1.3 I have carefully considered the submissions made before me. Admittedly the income assessed is winning from....

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....e charged from him. The assessee has surrendered a sum of Rs. 1 lakh as the value of car won in prize during the assessment year in question and has agreed to pay tax on the same. So the provisions of s. 208 of the IT Act comes into play which have not been taken into consideration by the CIT(A) while disposing of the appeal of the assessee. Sec. 208 reads as under: "208. Advance tax shall be payable during a financial year in every case where the amount of such tax payable by the assessee during that year, as computed in accordance with the provisions of this chapter, is one thousand five hundred rupees or more." 9. It means that s. 208 in its present form, which came into effect from 1st April, 1988, for the asst. yr. 1988-89 onward....