SECTIONS 234A, 234B AND 234C - Interest payable by assessee - Reduction/waiver of interest by Chief Commissioner/Director General - F. No. 212/495/92-IT(A-II)] - Income Tax

SECTIONS 234A, 234B AND 234C - Interest payable by assessee - Reduction/waiver of interest by Chief Commissioner/Director General Notification : [F. No. 212/495/92-IT(A-II)], dated 2-5-1994 . In exercise of the powers conferred under clause ( a ) of sub-section (2) of section 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes hereby direct that in cases where any income accrues or arises for any previous year due to the operation of any order of a Court, statutory authority or of the Government (other than an order of assessment, appeal, reference or revision passed under the provisions of the Income-tax Act, 1961) passed after the close of the said previous year (such income and the order hereinafter referred to as the "relevant income" and the "relevant order" respectively) interest under sections 234A, 234B and 234C shall be reduced or waived by the Chief Commissioner of Income-tax/Director-General of Income-tax subject to the conditions, for the period and to the extent mentioned hereunder, namely : ( i ) Conditions ( a ) the relevant income is disclosed in a return of income furnished for the said previous year or is otherwise disclosed to the Assessing Officer; and ( b ) the tax attributable to such income has been paid; ( ii ) Period ( a ) in respect of interest under section 234A from the date immediately following the due date for furnishing the return of income for the relevant assessment year till the end of the month in which the relevant order giving rise to the relevant income is passed; ( b ) in respect of the interest under section 234B, from the first day of April of the relevant assessment year till the end of the month in which the relevant order giving rise to the relevant income is passed; ( c ) in respect of interest under section 234C, for the period mentioned in that section; ( iii ) Extent of interest to be reduced or waived The quantum of interest to be reduced or waived shall be the difference between : ( a ) the interest computed for the period mentioned at ( ii ) above with reference to the tax on the total income inclusive of the relevant income; and ( b ) the interest computed for the same period with reference to the tax on the total income as reduced by the relevant income. 2. Waiver or reduction under this order shall be allowed with reference to the relevant orders passed on or after the 1st day of April, 1989.