P.G. Agarwal, J.@mdashThe petitioner before us is an assessee under the Assam Agricultural Income Tax Act, 1939 (for short "the Act"). For the assessment year 1987-88, the petitioner submitted his return whereby the competent authority assessed the income and tax thereupon. So far the assessment of the income and the tax are concerned, these are not under challenge in this writ petition. Further, the assessing authority levied an interest of Rs. 2,32,623 in the assessment order dated September 7, 1996, and the same has been challenged in this writ petition stating that the interest levied is in violation of Sub-clause (5) of Section 20C of the Act (since repealed).
2. The respondent-authorities have not filed any affidavit-in-opposition.
3. Heard learned counsel for both sides.
4. There is no dispute at the Bar that the provisions of Section 20C of the Act (since repealed) are applicable in the present case as the matter relates to the period during which the said provisions were applicable.
5. Mr. Bhatra, learned counsel for the petitioner, has submitted that the provisions of Section 20C of the Act are more or less identical with the provisions of Section 234B of the Income Tax Act, 1961, and the requirement of law is that if the Assessing Officer intends to levy interest he must pass a specific order giving the grounds for levying the interest and also state the period for which the interest has been levied and at what rate, etc, etc.
6. We have perused the impugned assessment order wherein it is merely stated add interest so and so ... There is absolutely no order as to why the interest is being levied and for which period.
7. In the case of
8. In the circumstances and the fact that the provisions of Sub-clause (5) of Section 20C of the Act were more or less identical with Section 234B of the Income Tax Act, we hold that in the absence of any specific order regarding the interest levied in the impugned order is bad in law and the same is hereby quashed.
9. The civil rule stands allowed.
