COMMISSIONER OF INCOME-TAX VS RANCHI CLUB LTD.
2001 P T D 2421
[247 I T R 209]
[Supreme Court of India]
Present: S. P. Bharucha, Syed Shah Mohammed Quadri and N. Santosh Hegde, JJ
COMMISSIONER OF INCOME‑TAX and others
Versus
RANCHI CLUB LTD
Civil Appeal No. 10360 of 1996 with Civil Appeals Nos. 145 to 149 of 1997, decided on 01/08/2000.
(Civil Appeal No. 10360 of 1996 is against the judgment and order, dated November 13, 1995 of the Patna High 'Court (Ranchi Bench) in C.W.J.C. No.3088 of 1995 (R)).
(Civil Appeals Nos. 145 to 149 of 1997 are against the judgment and order dated July 2, 1996 of the Patna High Court (Ranchi Bench) C.W.J. C. Nos.3494, 3527, 3609, 3562 and 3782 of 1995(R)).
(a) Income‑tax‑‑‑
‑‑‑‑Interest‑‑‑Return of income filed by assessee‑‑‑Notice to produce accounts or document‑‑‑ Interest not leviable for failure to comply with notice‑‑ Indian Income Tax Act, 1961, Ss. 142(1)(ii), (iii) & 234A.
(b) Income‑tax‑‑‑
‑‑‑‑Interest‑‑‑Specific direction giving reference to section necessary in assessment order‑‑‑Absence of reference to section under which interest to be levied‑‑‑Interest not leviable through notice of demand‑‑‑Indian Income Tax Act, 1961, Ss. 156, 234A, 234B & 234C.
(c) Income‑tax‑‑‑
‑‑‑‑Notice of demand‑‑‑Interest not leviable through notice of demand without specific direction in assessment order‑‑‑Indian Income Tax Act, 1961, S.156.
(d) Income‑tax‑‑‑
‑‑‑‑Interest‑‑‑Default in filing return‑‑‑Interest to be calculated with respect to income declared in return‑‑‑Not income assessed‑‑‑Indian Income Tax Act, 1961, S.234A.
Against the decision of the High Court (see (1996) 217 ITR 72), inter alia, that the object of section 234A of the Income Tax Act, 1961, was not to penalise the assessee, who had already filed a return under section 139, for not producing accounts or documents and so on pursuant to notice issued under clause (ii) or (iii) of section 142(1), and that no interest could be levied under section 234A for such failure and that under Explanation 4 to section 234A interest was to be levied with respect to the income declared in the return and not the income assessed, the Department preferred an appeal to the Supreme Court. The Supreme Court dismissed the appeal.
Ranchi Club Ltd. v. CIT (1996) 217 ITR 72 affirmed on this point.
Against the decision of the High Court in relation to Ranchi Club Ltd see (1996) 222 ITR 44), inter alia, that an order of the Assessing in the assessment order to charge interest has to be specific and clear and the assessee must be made to know that the Assessing Officer, after applying his mind, has ordered charging of interest and under what section, the Department preferred appeals to the Supreme Court. The Supreme Court dismissed the appeals.
Ranchi Club Ltd. v. CIT (1996) 222 ITR 44 affirmed on this point.
Dr. V. Gauri Shankar, Senior Advocate (Ranbir Chandra, Rajiv Nanda arid Ms. Sushma Suri, Advocates with him) for Appellants.
Deba Pradsad Mukherjee, Advocate for the Respondents (in C.A.No. 10360 of 1996).
JUDGMENT
We have heard learned counsel for the appellant. We find no merit in the appeals.
The civil appeals are dismissed. No order as to costs.
M.B.A./981/FCAppeals dismissed.