Interest u/s 234B cannot be levied unless AO specifies in Assessment Order

Issue is squarely covered by the decision of the Apex Court in the case of Commissioner of Income Tax and others v. Ranchi Club Ltd., reported in (2001) 247 ITR 209. In the said decision, the Apex Court held that in absence of any specific direction giving reference to the section charging interest in the assessment order, no interest can be levied through a notice of demand.

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 84 of 2000

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