Ramachandran Nair,J v. C.n.ramachandran Nair

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 15TH JULY 2009 / 24TH ASHADHA 1931 ITA.No. 542 of 2009() THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM --------------------- ITA.355/COCH/1999 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX, KOTTAYAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- SRI.P.I.ANSARI, SCRAPTEX, RUBBER DEALERS, NATTAKOM, KOTTAYAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 15/07/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ON 15/07/2009, THE COURT ON THE SAME DAY DELIVERED THE -------------------------------------------- -------------------------------------------- Dated this the 15th day of July, 2009 JUDGMENT Ramachandran Nair,J. The question raised in the appeal filed by the revenue is whetherthe Tribunal was justified in holding that interest under Section 234Bcannot be demanded from the assessee because there was no proposalto charge the same in the assessment order. However, on goingthrough the assessment order, we find that interest is in fact leviedthough without any advance proposal or notice to the assessee. TheSupreme Court has in the decision reported in CIT V. ANJUM M.H.GHASWALA, 252 I.T.R. 1 held that interest under Section 234B and234C are mandatory in nature. This Court in the decision inKUTTUKARAN MACHINE TOOLS V. CIT , 264 I.T.R. 305 held thatthere is no requirement of any statement by the assessing officer that hewill charge interest before levying it. So much so, the officer isjustified in levying interest which is mandatory under the Act.However, if there is mistake in the quantum, it is for the assessee to point out the same in rectification proceedings and get it corrected.Since the orders of the Tribunal and that of the first appellate authorityare contrary to the decision of the Supreme Court and this Court abovereferred, we allow the appeal by reversing the orders of the Tribunaland that of the first appellate authority and restore the levy underSection 234B. However, the assessing officer will make correction ifthere is any mistake pointed out by the assessee. The assessing officerwill forward a copy of this judgment to the assessee. (C.N.RAMACHANDRAN NAIR) Judge. (C. K. ABDUL REHIM) Judge. kk