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Judgment
A.K. Sikri, Acting Chief Justice
Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest u/s 234-B of the
income tax Act had arisen in those appeals also.
2 Vide separate order passed today, the issue is decided in favour of the assessee.
That apart, we find that the tax effect in this appeal is Rs. 4,79,170/- and in view of the latest guidelines of the CBDT, the appeal is otherwise
not entertainable when we find that the issue does not have cascading effect.
It would be worthwhile to mention that the interest was charged under the aforesaid provision by the Assessing Officer on the ground that
advance tax was not paid. This order was set aside by the CIT (A) and the order of the CIT(A) has been affirmed by the ITAT holding that the
assessee had no liability to pay advance tax in view of the fact that his entire income was subject to tax at source.
This issue also stands concluded by a Division Bench judgment of this Court in Director of income tax Vs. Jacab Civil Incorporated [2010] 194
TAXMAN 495.
Thus, no substantial question of law arises in this appeal which is accordingly dismissed.
ITA No. 337/2007 & ITA 338/2007
Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest u/s 234-B of the
income tax Act had arisen in those appeals also.
Vide separate order passed today, the issue is decided in favour of the assessee.
That apart, we find that the tax effect in this appeal is much less than Rs. 4 lacs and in view of the latest guidelines of the CBDT, the appeal is
otherwise not entertainable when we find that the issue does not have cascading effect.
It would be worthwhile to mention that the interest was charged under the aforesaid provision by the Assessing Officer on the ground that
advance tax was not paid. This order was set aside by the ITAT holding that the assessee had no liability to pay advance tax in view of the fact
that his entire income was subject to tax at source.
This issue also stands concluded by a Division Bench judgment of this Court in Director of income tax Vs. Jacab Civil Incorporated [2010]
194 TAXMAN 495.
Thus, no substantial question of law arises in these appeals which are accordingly dismissed.
ITA No. 131/2009
Order in this appeal was reserved alongwith ITA 504/2007 and other connected matters since issue of charging of interest u/s 234-B of the
income tax Act had arisen in those appeals also.
It would be worthwhile to mention that the interest of Rs. 2,90,403/-and Rs. 3,56,637/- respectively was charged u/s 234-B & C of the
income tax Act by the Assessing Officer on the ground that advance tax was not paid. This order was set aside by the CIT (A) and the order of
the CIT(A) has been affirmed by the ITAT holding that the assessee had no liability to pay advance tax in view of the fact that his entire income
was subject to tax at source.
This issue also stands concluded by a Division Bench judgment of this Court in Director of income tax Vs. Jacab Civil Incorporated [2010]
194 TAXMAN 495.
Thus, no substantial question of law arises in this appeal which is accordingly dismissed.