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2016 (1) TMI 757 - HC - Income TaxWaiver of interest under Section 234C - whether petitioner/assessee's explanation was satisfactory of acceptance for the benefit of waiver of interest charged under Section 234C by invoking clause 2(b) of the notification dated 26.06.2006, Annexure-B? - Held that:- Admittedly the Chief Commissioner without making reference to any material over manufacture, sales, production of automotive parts by the petitioner during the 1st quarter of the financial year 2009-10, was not justified in concluding that petitioner could have by an internal mechanism, anticipated the spurt in increase in profit in the last quarter of the year, for payment of Advance Tax. It is no doubt true that petitioner did not experience a windfall during the last quarter of the financial year 2009-10, but did have an increase business income. Paragraph 2(b) of the notification cannot be read restrictively, to mean that waiver of interest under Section 234 'C' is available only to cases of windfall, since that would be too myopic. In fact discretion is invested in the Chief Commissioner to be exercised judiciously, based on facts and circumstances, since not circumscribed by any fetters. If as noticed supra, and at the cost of repetition petitioner suffered decrease in current income in the three consecutive previous years, coupled with global recession in automotive industry, an admitted fact, it was imminent for the Chief Commissioner to have exercised judicious discretion in petitioner's favour. In considered opinion, in the facts and circumstances, petitioner's explanation is acceptable, calling for exercise of discretion by the Chief Commissioner under paragraph 2(b) of the notification dated 26.06.2006, Annexure-B, over the extent of interest waiver. In the result, petition is allowed. The order impugned is quashed and the proceeding remitted for consideration by the Chief Commissioner, insofar as it relates to the extent of waiver of interest charged under Section 234C in terms of paragraph 2(b) of the notification dated 26.06.2006, Annexure-B. Compliance within four weeks from the date of receipt of a copy of this order.
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