No interest u/s 234B during Block Assessment

Brief of the case

In the Case of ACIT v Akhil Jain, ITAT Delhi held that no interest will be levied u/s 234B during the Block Assessment by the virtue of Section 158BF.

Facts of the Case

In the present facts of the Case, the Settlement Commission passed an order dated 31.03.2011 u/s 245D(4). The Assessing Officer passed an order u/s 158BC/245D(4) on 04.05.2011 determining income at Rs.8,21,000/- and raised a demand of Rs.60,548/-. The demand raised was duly paid by the assessee. Subsequently, a notice u/s 154 was issued to the assessee proposing to charge interest u/s 234B of the Act. In response, it was submitted that there was no mistake apparent from the record within the meaning of section 154 of the Act and also contended that interest u/s 234B is not chargeable in respect of income determined in the block assessment. The Assessing Officer, however, rejected the contentions raised by the assessee and passed an order u/s 154/158BC/245D (4) of the Act raising a demand u/s 234B of the Act amounting to Rs.7,88,252/-.

Held by CIT(A)

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