1985 (12) TMI 90
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....ct'). The ITO made the assessment under section 143(3), read with section 144B, of the Act. He directed in the assessment order to give tax credit for a sum of Rs. 10,68,000 paid under section 210 of the Act. It appears that he has also directed to charge interest under section 217(1A) even though the actual amount of interest and the manner of computing the same has not been stated in that order. 3. The assessee appealed to the Commissioner (Appeals) and contended that the levy of the interest was not justified. The Commissioner (Appeals) found that section 217(1A) says that interest would be charged for default in filing the statement of advance tax. He found that the assessee had paid advance tax of Rs. 10,68,000 in three instalments on....
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....he directed that no interest should have been charged. He also referred to the fact that the assessment order does not say as to how much was the interest that had to be charged and the manner of its computation which fact also vitiated the order to levy interest. 4. Aggrieved by the above order of the Commissioner (Appeals), the department is in appeal before us. Shri P.C. Banerjee, the learned representative for the department, urged before us that the Commissioner (Appeals) was not justified in assuming jurisdiction over a matter concerning interest charged under section 217. According to him, the said matter was not appealable. He relied on the decision in the case of CIT v. Geeta Ram Kali Ram [1980] 121 ITR 708 (All.). Even on merits ....
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....charging of interest is within the discretion of the ITO. Finally, he pointed to the decision of the Patna High Court in the case of Bihar State Road Transport Corpn. v. CIT [1984] 149 ITR 208 wherein the view expressed in CIT v. Daimler Benz A.G. [1977] 108 ITR 961 (Bom.) (FB) has been followed. It may be stated that the Calcutta High Court in the case of New Swadeshi Mills Ltd. has also held the same view. In Bihar State Road Transport Corpn.'s case the view expressed in Geeta Ram Kali Ram's case was dissented from. Coming to the merits, be took us through the language of section 217. He pointed out that in case an assessee does not file a statement under section 209A, interest will be charged on the amount equal to the assessed tax as de....