A M SAINALABDEEN MUSALIAR Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER challenges the Constitutional validity of ss. 234A, 234B and 234C of the IT Act. The identical issue was raised before a Division Bench of the Karnataka High Court recently in the judgment in Dr. S. Reddappa & Ors. v. Union of India & Ors. The Division Bench following the judgment of the Supreme Court in Khazan Chand v. State of Jammu & Kashmir and the judgment of Patna High Court in Ranchi Club Ltd. v. CIT & Ors. held that the provisions for levy of interest under ss. 234A, 234B and 234C are compensatory in character and are not unconstitutional. I am in full agreement with the view taken by the Division Bench of the Karnataka High Court. Hence, this original petition is dismissed.

(2.) HOWEVER, the dismissal of this original petition will not in anyway prejudice to the right of the petitioner, if any, to move the IT Department under Samadan scheme or any other scheme.