Order passed byCommissioner u/s.264 of the Income Tax Act. - Income Tax - 1192/CBDT

INSTRUCTION NO. 1192/CBDT Dated : June 3, 1978 Section(s) Referred: 220 ,264 Statute: Income - Tax Act, 1961 Recently a case was referred to the Board wherein the Commissioner sought a clarification whether interest charged u/s.220(2) from the due date to the date of adjustment of the moneys which lay seized from an assessee by the Customs authorities and which were ultimately adjusted towards the taxes due, can be reduced, waived through an order passed by the Commissioner u/s.264 of the I.T.Act. 2. The matter was examined in consultation with the Law Ministry. The Board are advised that since an order passed u/s.264 is also subject to the provision for reduction/waiver of interest chargeable u/s.220(2) in the Act, it will not be permissible for the CIT to allow such reduction/waiver through an order u/s.264, howsoever genuine the rationale for such reduction/waiver may be. 3. The above instructions would apply mutatis mutandis to interest chargeable under the corresponding provisions of Wealth Tax Act and Gift Tax Act.