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2017 (3) TMI 733 - HC - Income TaxWaiver of interest under Section 234C - Whether the final conclusion recorded by the learned Single Judge that the explanation of the petitioner was acceptable so as to falling in category of paragraph-2(b) of the notification dated 26.06.2006 Annexure ‘B’ can be sustained or not? - Held that:- Single Judge made a final observation that the assessee’s explanation is acceptable calling for exercise of discretion under pargraph-2(b) of the notification dated 26.06.2006. Thereafter, the learned Single Judge has remitted the matter to the Chief Commissioner for consideration of the case for extent of waiver of interest in terms of the notification dated 26.06.2006. In our considered view, recording of final conclusion for acceptance of the explanation of the respondent was not called for or rather can be said to be exceeding the jurisdiction inasmuch as observed by us hereinabove while exercising the power under Article 226 of the Constitution against the order of the lower authority and after having interfered in the decision making process, the matter was required to be remanded keeping the rest of the aspects open, of course, by excluding the aspects which are already considered by the High Court under Article 226 of the Constitution of India. In our view, such an exercise of jurisdiction of accepting the explanation of the assessee is at par with the appellate power which in normal circumstances would not be available in the scope of judicial review under Article 226 of the Constitution. We do not find that any abnormal circumstances are recorded to make a departure from the normal principles of relegating the matter to the authority for consideration afresh in accordance with law. Hence, the opinion recorded i n the impugned order of acceptability of the explanation of the assessee cannot be sustained. Hence the point referred to hereinabove needs to be answered in a manner that the finding could not have been recorded of accepting the explanation of the assessee and the observations made in the impugned order at paragraph- 24 which are underlined in the above referred reproduced portion deserves to be set aside. Once the aforesaid observations are set aside, the consequence would be for reconsideration of the case for waiver of interest under Section 234C of the Act in terms of the notification dated 26.06.2006 and the other aspects so observed in the impugned order in paragraph-24 would also not be required. Observations and the directions issued by the learned Single Judge in the impugned order at paragraph-24 are set aside and modified to the extent that the matter shall be reconsidered afresh by the Chief Commissioner for waiver of interest charged under Section 234C of the Act in terms of the notification dated 26.06.2006, in light of the observations made by the learned Single Judge upto paragraph-23 of the impugned order. The Chief Commissioner shall examine the matter and pass appropriate order preferably within a period of eight weeks from the date of receipt of a certified copy of the order of this Court after giving opportunity of hearing to the respondent-assessee.
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