Delhi Automobiles (P) Ltd. vs Commissioner of Income Tax

Arijit Pasayat, C.J.

Pursuant to the directions given by the court u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act''), the following question has been referred by the Tribunal for opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that there was no ground for appeal before the Appellate Assistant Commissioner in regard to the charge of interest u/s 217(1A) of the Income Tax Act, 1961 ?"

Factual aspects need not be noted in detail in view of what has been held by this court in Ashok Kumar Vs. Commissioner of Income Tax, . In that case a distinction was made between challenge to the chargeability of the interest and quantum thereof. The matter was also examined by the Apex Court in Associated Stone Industries (Kotah) Ltd. Vs. Commissioner of Income Tax, Jaipur, . Keeping in view the ratio of the above decision, the answer to the question has to be in negative, in favor of the assessed and against the revenue. While dealing with the matter u/s 260 of the Act, the Tribunal shall go into the connected factual aspects.