COMMISSIONER OF INCOME TAX Vs. BANSAL ABHUSHAN BHANDAR

JUDGEMENT

(1.) THIS order shall dispose of IT Ref. Nos. 58 and 58A of 1996 for asst. yrs. 1985 -86 and 1986 -87 as an identical question of law has been referred in these cases.

(2.) AT the instance of the Revenue, the Income -tax Appellate Tribunal, Delhi Bench 'E', Delhi (for short "the Tribunal") has referred the following question of law under s. 256(1) of the IT Act, 1961 (for short "the Act") for the asst. yrs. 1985 -86 and 1986 -87 for the opinion of this Court : "Whether, on the facts and circumstances of the case, the Tribunal was right in law in upholding the CIT(A)'s order whereby he had deleted the interest charged under s. 215/217 of the IT Act, 1961 -

(3.) BRIEFLY , the facts necessary to answer the above question are that original assessments in the aforesaid matters were completed under s. 143(1) of the Act on a total income of Rs. 17,140 and Rs. 39,566 respectively. No interest was charged thereon under s. 215/217 of the Act. The assessments, however, came to be reopened. The reassessment was completed on the enhanced income of Rs. 2,99,491 and Rs. 9,22,119 respectively. Interest under s. 217 of the Act was levied in pursuance of the enhancement made to the total income on the finalization of reassessment proceedings. The assessee moved applications under s. 154 of the Act requesting that interest charged under s. 217 of the Act amounting to Rs. 27,102 and Rs. 53,330 respectively on reassessment was wrongly charged and that part of the reassessment 1988 (Annexs. A1 and A2).