COMMISSIONER OF INCOME TAX Vs. R RAMALINGAIR

JUDGEMENT

(1.) At the instance of the Revenue, following questions have been referred to for opinion of this Court under S.256(1) of Income Tax Act, 1961 (in short, the Act) by Income Tax Appellate Tribunal, Cochin Bench (in short, the Tribunal):

(2.) As questions referred to are purely of law, detailed reference to factual position is unnecessary. Stated in brief, same is as follows: Assessee is a partnership firm carrying on business in paper, paper products, office stationary, etc. For assessment year 1991-92, it filed return of income on 31.8.1992 declaring a total income of Rs.8,23,510/-. Return was processed under S.143(1)(a) of the Act and total income was determined at Rs. 8,25,260/-. As per intimation issued under S.143(1)(a), there was levy of interest of Rs.9,730/- under S.234A and interest of Rs.16,545/- under S.234B. Subsequently, assessment was completed under S.143(3) on 28.3.1994, and in the order of assessment, interest under S.234A was enhanced to Rs.30,460/- and under S.234B to Rs.1,02,322/-. Such levy was challenged by assessee before Commissioner of Income Tax (Appeals) (in short, C.I.T.(A)). Getting no relief from said authority matter was taken before Tribunal amongst other grounds of challenge. Tribunal, relying on an earlier decision rendered by it, held that without affording an opportunity of being heard to assessee, levy of interest cannot be made under S.234B and 234C of the Act. Aggrieved by said order, Revenue sought for a reference, which was, as aforestated, accepted.

(3.) Learned counsel for Revenue submitted that Tribunal has erroneously come to conclusion that there is requirement of granting opportunity of being heard before levy of interest. There is no appearance on behalf of assessee, inspite of notice.