P. SHANMUGAM, J.: Petitioner challenges the Constitutional validity of ss. 234A, 234B and 234C of the IT Act. The identical issue was raised before a Division Bench of The Karnataka High Court recently in the judgment in Dr. S. Reddappa & Ors. Vs. Union of India & Ors. (1998) 149 CTR (Kar) 521 : . The Division Bench following the judgment of the Supreme Court in Khazan Chand vs. State of Jammu & Kashmir (1984) 56 STC 214 (SC) and the judgment of Patna High Court in Ranchi Club Ltd. vs. CIT & Ors. (1996) 131 CTR (Pat) 368 : (1996) 217 ITR 72 (Pat) : held that the provisions for levy of interest under ss. 234A, 234B and 234C are compensatory in character and are not unconstitutional. I am in full agreement with the view taken by the Division Bench of the Karnataka High Court. Hence, this original petition is dismissed.
OPEN