- (1.) THE present appeal is filed by the Department under Section 260A of the Income Tax Act, 1961, against the impugned order dated 31.03.2005 passed by Income Tax Appellate Tribunal, Delhi in I.T.A. No. 745/Del/2004 for the assessment year 1997 -98.
(2.) ON 13.09.2007, a coordinate Bench has admitted the appeal on the following substantial question of law : (i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in law in confirming the order of the CIT(A) who cancelled the order passed by the A.O. under Section 154 for charging of interest under Section 234 -B and 234 -C of the Act which have been held to be mandatory in nature by the Supreme Court in the case of CIT Vs. Anjum M.H. Ghaswala and others, 2001 252 ITR 1?
(3.) THE brief facts of the case are that during the assessment year under consideration, the assessee has shown that he had purchased a property in the urbanized village Masjid Moth, New Delhi. The matter was referred to the valuation cell. Finally, the A.O. has made the addition, while passing the assessment order dated 31.3.2000, which was challenged before the CIT(A), who vide its order dated 4.9.2000 has set aside the assessment order and remanded the matter to the A.O. for fresh adjudication. In pursuance to the order of the CIT(A), the A.O. again passed assessment order on 21.3.2002 under Section 143(3)/251 of the Act. The A.O. has also mentioned that the interest may be charged as per the rules. Being aggrieved, the assessee has assailed the order before the CIT(A), who vide its order dated 27.3.2003 has allowed the claim of the assessee by observing that no interest can be charged. In other words, the CIT(A) observed that no interest can be charged as no specific mention was made in the assessment order.;