MANSAROVAR COMMERCIAL PVT. LTD. v. COMMISSIONER OF INCOME TAX, DELHI

p. 495 Copy page pinpoint

OF INCOME TAX, DELHI [M. R. SHAH, J.]

holding that the levy of interest under Section 234A is statutory interest and mandatory and automatic, thereafter the said issue cannot be said to be a question of law. Conclusion:

14Copy pinpoint14. In view of the above and for the reasons stated above and the findings recorded by the AO, CIT(A), confirmed by the High Court, it cannot be said that the High Court has committed any error in upsetting the findings recorded by the ITAT. We are in complete agreement with the view taken by the AO, CIT(A) and the High Court on all issues including the issue of control and management of the affairs of the assessee companies by Rattan Gupta from Delhi; jurisdiction of the AO C at New Delhi; applicability of the Income Tax Act, 1961; that the assessees did not prove that the income was earned by way of commission in Sikkim and therefore the tax was not liable to be paid under the Income Tax Act, 1961 and was liable to be paid under the Sikkim Manual, 1948. We are also in agreement with the view taken by the High Court on levy of interest in view of the binding decision of the Constitution Bench in the case of Anjum M.H. Ghaswala (supra), which has been subsequently followed in the case of Karanvir Singh Gossal (supra).

15Copy pinpoint15. In view of the above and for the reasons stated above, the present appeals fail and the same deserve to be dismissed and are accordingly dismissed. However, in the facts and circumstances of the case, there shall be no order as to costs.

Ankit Gyan Appeals dismissed. (Assisted by : Mahendra Yadav, LCRA) F