TAXPAYERS can take advantage of the decision of the Mumbai Bench of the Income-Tax Appellate Tribunal. The tribunal, in a recent order, held that a taxpayers need not pay interest, if the assessment order does not clearly mention the quantum of interest. The tribunal struck down an order of the income-tax department charging interest from Mr Bharat C Gandhi, an individual taxpayer, solely on the grounds that the assessment order did not mention the quantum of interest charged on him. There was a mention of the quantum of interest in the notice of demand sent to the assessees, but no mention of interest in the assessment order. The income-tax rules stipulate that assessment order should contain the quantum of interest, if interest has to be recovered from the taxpayer
Taxpayers need not pay interest if not specified in assessme
CA. A. Kumar (Associate Consultant) (2362 Points)
05 August 2008