COMMISSIONER OF INCOME TAX Vs. N. SANNAMMA

JUDGEMENT

(1.) These appeals are filed by the Revenue questioning the correctness and legality of the order dated 16.12.2000 passed by ITAT, Bangalore Bench B in ITA Nos. 1436 and 1676 /Bang/2005 relating to the assessment years 1995-96.

(2.) This Court by order dated 13.9.2007 admitted ITA 955/2006 to consider the following substantial questions of law:

(3.) The assessees made a declaration before the Commissioner of Income Tax, Mysore under Voluntary Disclosure of Income Scheme, 1997 (hereinafter referred to 'VDIS' for brevity) offering undisclosed income. The said declaration was rejected as tax and interest was not paid as per section 67(2) of the Finance Act, 1997 within the stipulated period. Hence, a notice under 148 was issued and assessment was completed by separate orders dated 6.6.2002 and 9.7.2002. On determination of the tax payable interest was levied under sections 234A, 234B and 234C. Assessees filed application under section 154 of the Act seeking deletion of interest levied under sections 234A and 234B of the Act. Said application came to be rejected by the Assessing Officer by order dated 18.4.2005 and 11.07.2005.