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2017 (12) TMI 1064 - HC - Income TaxWaiver of interest payable under Sections 234A, 234B and 234C - petitioner's case was that he had no taxable income - consistent case of the assessee is that the property continues to remain undivided and no income arose from the property to the petitioner and as there was no taxable income, returns were not filed - Held that:- The petitioner established his bonafides by referring to the suit for partition, which was pending trial, in which the petitioner/assessee is arrayed as 6th defendant. Thus, when the property continues to remain undivided, the assessee cannot anticipate the accrual/receipt of such income. The circular issued by the Board empowering the Chief Commissioner to consider the waiver petition for waiver of interest under Section 234A as well as 234B would show that even in cases covered by Section 234B and even though these provisions are compensatory in nature, special orders for grant of relaxation could be passed. Thus, this Court is convinced that the dispute with regard to the division of property was a bonafide dispute which directly relates to the assessbility of the petitioner to tax. Therefore, if the petitioner is entitled for waiver of interest under Section 234A of the Act for the reasons set out above, the question of payment of advance tax nor a portion thereof will not arise and therefore, the petitioner is entitled for waiver of interest under Sections 234B and 234C.
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