UDAY MISTANNA BHANDAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In these eight writ applications, we have heard common arguments. The questions raised are with respect of chargeability of interest under ss. 234A, 234B and 234C of the IT Act, 1961 (for short, "the Act"). These sections were inserted by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1st April, 1989. A Bench of this Court in Ranchi Club Ltd. vs . CIT [1996]217ITR72(Patna) , while interpreting ss. 234A and 234B of the Act, held that interest under these sections should not be charged on excess tax as per income determined under ss. 143(3)/144 of the Act and said that interest under s. 234A was leviable on the tax on the total income as declared in the return. The correctness of this decision has been doubted before us by the Revenue and it has been submitted that the matter be referred to a larger Bench for an authoritative decision.

(2.) While s. 234A deals with levy of interest for default in furnishing return of income, under s. 234B interest has to be levied for defaults in payment of advance tax and under s. 234C interest is payable for deferment of advance tax. Since the aforesaid decision of this Court in Ranchi Club Ltd. vs. CIT really interpreted the provisions of 234A, we may set out the relevant part of this section as under :

(3.) In this batch of eight writ applications, five pertain to cases of the Ranchi Club itself. The earlier decision in the case of Ranchi Club was with respect of the asst. yr. 1991-92. Now the assessment years involved are 1989-90, 1990-91, 1992-93, 1993-94 and 1994-95. In two cases for the asst. yrs. 1989-90 and 1990-91, the assessee is Tej Kumari Devi and in the last eight case the assessee is Uday Mistanna Bhandar and the assessment year involved is 1990-91.