Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 615 - HC - Income TaxWaiver of the interest demanded u/s 158BFA - demand of interest u/s 245D(6A) - interest being leviable for delayed payment of taxes determined as payable by the Settlement Commission - HELD THAT:- Reasons cited in the order of the CBDT rejecting his claim for waiver of the interest demanded under Section 158BFA of the Act, we find that while it may be a fact that the CBDT in the impugned order had cited an erroneous reason, that by itself does not persuade us to take a different view in the matter since we find that the return filed by the appellant in response to the Section 158BC notice was only on 01.05.2000, well beyond the time prescribed under the Act for filing the said return. As already noticed, the levy of interest under the said provision is automatic and the power to waive the said interest while lies with the CBDT u/s 119 (2)(a) of the Act, the said power can be exercised only in relation to a class of cases and not to individual cases. Thus, even if we were persuaded to remit the matter to the CBDT for a fresh consideration, taking note of the erroneous reason furnished by them in the impugned order, we are of the view that it would be an exercise of futility for the appellant does not fall under any class of cases in respect of which alone the CBDT can exercise its discretion to grant waiver of the interest demanded. Demand of interest u/s 245D(6A), we find that the said interest is levied for the delayed payment of the tax determined as payable by the Settlement Commission, which was a forum chose by the appellant himself for settlement of the dispute with the Income Tax Department. The provision being part of the Code under Chapter XIX-A of the Act, the interest levied thereunder cannot be waived since it has to be seen as forming an integral part of the Settlement that resulted pursuant to the appellant approaching the Settlement Commission of his own volition. Thus in any view of the matter, we see no reason to interfere with the judgment of the learned Judge.
|