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2020 (1) TMI 1062 - MADRAS HIGH COURTWaiver of interest u/s 234B - application u/s 119 (2) (b) filled - HELD THAT:- The Central Board of Direct Taxes has issued the circular in the exercise of powers vested under Section 119 (2) (a) of the Income Tax Act, 1961. The circular has to be read strictly. Normally, these cannot be any addition or substitution by the authority concerned while entertaining the application for waiver of interest under Section 234 A, B or C of the Income Tax Act, 1961. Since, during the Assessment Years 1992-93 to 1994-95 there were no decisions of this court, the respondent was justified in not granting waiver of interest as per the above circular. Petitioner can legitimately state that it was entitled to take a bonafide view that it was eligible for exemption from payment of tax and/or claim deductions under Section 80HHC of the Income Tax Act, 1961 provided there were decisions of Tribunal though not of the jurisdictional Tribunal or the High Court as the case may be to entertain such a view. The Central Board of Direct Taxes perhaps could to have considered these factors and such eventualities while issuing the said circular. However, it has restricted to specified instances for grant of waiver. Since, the respondent is bound by the circular, I find no fault in the impugned orders of the respondent in refusing to grant waiver to the petitioner in terms of the said circular. Waiver of interest under Section 234B of the Income Tax Act, 1962 for the assessment years 1992-93, 1993-94, 1994-95, 2002-03 and 2004-05 can be directed to be given to the petitioner if there were decisions of the Tribunal or High Court though not of the jurisdictional Tribunal/High Court which would have allowed the petitioner to entertain such belief. The impugned orders are liable to be set aside and the cases be remitted back to the respondent to re-examine the issue afresh. In case the petitioner is able to show existence of any judgment of the Tribunal/High Court though not necessarily of the jurisdictional Tribunal/High Court at the time of filing of return, respondent can grant waiver/exemption to the petitioner by liberally construing the Circular. Accordingly, the impugned orders are set aside and the cases are remitted back to the respondent to pass a fresh order.
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