COMMISSIONER OF INCOME TAX AND DY. COMMISSIONER OF INCOME TAX Vs. GAYATHRI FOUNDATION

JUDGEMENT

(1.) THIS appeal by the revenue has been admitted on 17 -7 -2007 for consideration of the following substantial question of law: Whether the appellate Tribunal is not right in holding that interest under section 158BFA of the Act cannot be levied in respect of returns filed before 1 -6 -1999 since the payment of self assessment tax is covered under section 140A of the Act? The material facts leading up to this appeal are as follows : A search was conducted under section 132 of the income -tax Act (hereinafter called as the Act) on 14 -3 -1997 and undisclosed income was discovered. Hence, notice was issued under section 158BC of the Act on 27 -11 -1997. The assessee filed returns for the block period on 31 -12 -1998 for assessment years 1987 -88 to 1997 -98. Thereafter, the assessing officer proceeded to complete the block assessments and levied interest under section 158BFA(1) of the Act from 12 -1 -1998 to 31 -12 -1998 by order dated 18 -2 -1999. In appeal, the appellate Commissioner on merits of the matter granted relief in favour of the assessee. However, insofar as the interest component under section 158BFA(1) is concerned, the order of the assessing officer had been confirmed. However, the Tribunal by its order dated 5 -2 -2006 set aside the order passed by the appellate authority confirming the order of the assessing officer and held that no interest under section 158BFA(1) of the Act has to be imposed. Wherefore, this appeal is filed and admitted for consideration of the above referred substantial question of law.

(2.) THE learned counsel appearing for the appellants submits that the identical substantial question of law which has been framed in ITA No. 277/2004 c/w 281/2004 has been answered in favour of the revenue and against the assessee by the Division Bench of this Court by order dated 31 -72009. However, the learned counsel appearing for the respondent submitted that special leave petition is filed in (Civil) No. 274/2011. Hence, a direction may be issued to the assessing officer to give force to the judgment of this Court only after the matter pending before the Supreme Court is disposed of.