TMI Blog1983 (6) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... f time on January 23, 1976. From the order of assessment the petitioner preferred an appeal before the appellate authority. In giving effect to the appellate authority's decision the first respondent by his order Ex. P-2 dated March 31, 1978, reduced the interest to Rs. 5,09,770. Thereafter the petitioner moved a petition Ex. P-3 dated August 25, 1973, under the proviso to s. 139(8)(a) before the 1st respondent seeking waiver of the interest on the plea that it was prevented by sufficient cause from furnishing the return within the prescribed time. The first respondent, however, rejected the petition by his order Ex. P-4 dated September 5, 1978. The petitioner carried the order, Ex. P-4, in revision under s. 264 before the 2nd respondent, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m furnishing the return within time ". On this finding the 2nd respondent ought to have waived the entire interest. (ii) The proviso to s. 139(8)(a) read along with r. 117A(v) of the I.T. Rules makes it clear that on such a finding, the assessing authority is bound to waive the interest. The word " reduce ", in the proviso to s. 139(8) and r. 117A, must mean " to rescind or annul "; else, there would be scope for the exercise of an arbitrary power under the proviso to s. 139(8)(a). The fact that the power conferred is not to reduce the rate of interest also indicates that reduction can only mean complete obliteration of the interest on the prescribed conditions being satisfied. Whether it is for the reduction or waiver of the interest, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under such circumstances, reduce or waive the interest payable by the assessee. It does not mean that whenever the circumstances prescribed by r. 117A are satisfied the entire interest should be reduced. Had that been the intention the word " reduced " would not have been used. The proviso to s. 139(8) gives power to the ITO to use his discretion in certain cases, as prescribed and to reduce or waive the interest. The mere fact that the assessee has satisfied the conditions in r. 117A does not automatically mean that the entire interest levied should be waived. The ITO is also required to take into consideration other facts. The fact that the Government had lost revenue, on account of the postponement of payment of tax under s. 140A, is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys down that where the return under sub-s (1) or (2) or (4) for an assessment year is furnished after the specified date or is not furnished, the assessee shall be liable to pay simple interest at 12% per annum, for the period and on the amount specified. The proviso to sub-s. (8) enacts : " Provided that the Income-tax Officer may, in such cases and under such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section. " The prescription contemplated by the proviso is made in r. 117A which is headed, " Reduction or waiver of interest payable under section 139 It reads, to quote the material provisions : " The Income-tax Officer may reduce or waive the interest payable under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timate plea etc.) " Chambers' Twentieth Century Dictionary gives the following relevant meanings: "Reduce: ...... to bring into a lower state : to lessen: to diminish in weight or girth : to weaken : ...... to break up, separate, disintegrate : " " waive:... to give up voluntarily, as a claim or a contention; to refrain from claiming, demanding, taking, or enforcing ; to forgo." Regets' International Thesaurus, 3rd Edn., gives the following: "Reduce: decrease, diminish, lessen, take from; lower, depress, step down (coll.) tune down (coll.) scale down (U.S.) downgrade; depreciate, deflate ; curtail, retrench, cut, cut down, cut back, roll back (as prices (coll.) ); shorten, compress. " " Waive ", in the same book, has the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of connotations than the other words and is also the most general. It means " to make less in size, amount, number, extent or intensity: to reduce household expenses; to reduce a labour force during a slack season; to reduce speed on a highway undergoing repairs; to reduce the acreage of a property by selling off several paddocks.... " The same book explains " abate " thus : " Abate means to reduce, as in strength or degree, usually from an excessive intensity or amount. In this sense, it is most frequently an intransitive verb.... In a legal sense, abate is used transitively and means to do away with completely or to make null and void in whole or in part: to abate a nuisance ; to abate rent. " It was argued from this last use and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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