Tarun Agarwala, J. - (1.) WE have heard Sri Dhananjay Awasthi, the learned counsel for the appellant. No one appears for the assessee. All the appeals raise the same issue, and for facility, the facts in the appeal for the assessment year 1985 -86 is taken into consideration.
(2.) FOR the assessment year 1985 -86, an assessment order under section 147/144 of the Income -tax Act, 1961 (hereinafter referred to as "the Act") was passed. The operative portion of the order of the Assessing Officer is extracted hereunder: "Assessed on a total income of Rs. 6,10,850. Penalty proceedings under section 271(1)(a), 271(1)(b), 271(1)(c), 271A, 273(2)(b) are initiated. Issue notice of demand and challan and penalty notices." From the aforesaid, it is clear that the Assessing Officer had not issued any direction for charging interest under section 139(8) and section 215 of the Act. Pursuant to the said assessment order, a notice of demand was issued under section 156 of the Act demanding interest under the aforesaid sections. The assessee, accordingly, moved an application under section 154of the Act for rectification on the ground that no interest under section 139(8) and 215 of the Act could be levied since no such direction was issued by the Assessing Officer in the assessment order. The Assessing Officer rejected the application of the assessee under section 154 of the Act holding that charging of interest was mandatory and that the Assessing Officer had no discretion in the matter. The Assessing Officer, accordingly, rejected the application holding that there was no mistake apparent from the record. The assessee, being aggrieved by the charging of the interest, filed an appeal and the appellate authority by its order allowed the appeal and quashed the order demanding the interest. The appellate authority held that there has to be a specific order for charging interest in the assessment order and since the Assessing Officer did not levy any interest in the assessment order, no interest could be charged in the notice of demand issued under section 156 of the Act.
(3.) THE Department, being aggrieved, by the order of the appellate authority filed an appeal before the Income -tax Appellate Tribunal, who rejected the appeal and affirmed the order of the appellate authority. The Department, being aggrieved by the aforesaid order, has filed the aforesaid appeal under section 260A of the Act contending that a substantial question of law arises for consideration, namely, that the Tribunal was not justified in holding that interest under sections 215/217 and 139(8) of the Act could not be charged unless specifically mentioned in the assessment order particularly when charging of interest was mandatory.;