M. Chockalingam & M. Meyyappan vs Commissioner Of Income Tax & Anr.

Whether the Income Tax Officer's failure to issue notice before levying penal interest under Section 18A(8) through rectification proceedings under Section 35 constitutes a breach of natural justice --- Held Yes; Whether the fifth proviso to Section 18A(6) granting discretion to reduce or waive interest applies to cases under Section 18A(8) where no advance tax was paid --- Held Yes; Whether the addition of penal interest constitutes 'enhancement of assessment' under the proviso to Section 35 requiring notice --- Held Yes