K VENUGOPALAN NAMBIAR Vs. UNION OF INDIA

JUDGEMENT

(1.) CHALLENGE made in this original petition is, against levy of interest under Sections 139(8), 217 and 234A of the IT Act. Interest was levied for various assessment years in question. The main ground of attack is that Sections 139(8), 217 and 234A of the IT Act are confiscatory in nature and that the said levy is not compensatory interest for delayed payment of tax. Section 217 of the IT Act was replaced by corresponding provisions of the Amended Act in 1989 by Sections 234A, 234B and 234C. This question was considered by this Court in A.M. Sainalabdeen Musaliar v. Union of India and Ors. : [2000]242ITR400(Ker) , and it was held that Sections 234A, 234B and 234C are compensatory in character and are not unconstitutional. In view of the above facts, I do not find any merit in the contention raised by the petitioner. Accordingly, the same is dismissed.