IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No. 556 of 2007 DATE OF DECISION : 28.04.2008 The Commissioner of Income Tax, Panchkula .... APPELLANT Versus M/s Haryana Warehousing, Bay No. 15-18, Sector 2, Panchkula ..... RESPONDENT CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL HON'BLE MR. JUSTICE RAKESH KUMAR GARG Present: Mr. Yogesh Putney, Advocate, for the appellant-revenue. * * * SATISH KUMAR MITTAL , J. ( Oral ) The revenue has filed this appeal under Section 260-A of the Income Tax Act against the order dated 24.2.2005, passed by the Income Tax Appellate Tribunal, Chandigarh Bench `A' Chandigarh in ITA No. 174/CHANDI/2001 for the assessment year 1988-89, raising the following substantial question of law for consideration of this Court : “Whether in the circumstances and facts of the case, the ITAT was justified in deleting interest under Section 215/217 of the Income Tax Act, 1961 when it is mandatory in nature? Learned counsel for the appellant-revenue very fairly submits that in case of the assessee itself, this Court has decided an identical question in favour of the assessee, by dismissing two appeals (ITAs No. 242 ITA No. 556 of 2007 -2- of 2006 and 367 of 2005), filed by the revenue, which were pertaining to the assessment years 1989-90 and 1993-94. Learned counsel further very fairly points out that though in those cases, the identical question of law was raised by the revenue, but the interest was charged under Section 234B of the Income Tax Act, 1961 (hereinafter referred to as `the Act'), because the said provision was inserted with effect from 1.4.1989 and the old provisions of Sections 215/217 of the Act were ceased to apply with effect from 1.4.1989. Counsel submits that since the assessment in this case is prior to the said date, therefore, the question was framed to the effect as to whether in the circumstances and facts of the case, the ITAT was justified in deleting interest under Section 215/217 of the Income Tax Act, 1961 when it is mandatory in nature. Since the provisions of Sections 215/217 and 234B of the Act are pari materia, therefore, the authoritative pronouncements of this Court in ITAs No. 242 of 2006 and 367 of 2005 are applicable to this case. Accordingly, this appeal is also dismissed. ( SATISH KUMAR MITTAL ) JUDGE April 28, 2008 ( RAKESH KUMAR GARG ) ndj JUDGE