9911796707
TMI Blog2012 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... f advance tax installments due and payable on 15.12.1998 and 15.09.1999 in respect of Assessment Year 1999-2000 and 15.06.1999 and 15.09.1999 in respect of Assessment Year 2000-2001. 2. In respect of two defaults relating to Assessment Year 1999-2000, the petitioner is liable and has paid interest of Rs.16,91,786/- and Rs.1,76,905/-. With regard to the Assessment Year 2000-2001, the petitioner was asked and has paid interest of Rs.7,18,368/-. 3. The Chief Commissioner of Income Tax (Central) while rejecting the application has observed that the request for waiver of interest was made as per application dated 16.11.2006. Accordingly, she declined and did not apply the Instructions dated 23.05.1996 relied and referred to by the petitioner a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax may reduce or waiver interest charged under section 234A or section 234B or section 234C of the Act in the classes of cases or classes of income specified in paragraph 2 of this order for the period and to the extent the Chief Commissioner of Income-tax/Director-General of Income tax deem fit. However, no reduction or waiver of such interest shall be ordered unless the assessee has file the return of income for the relevant assessment year and paid the entire tax due on the income as assessed except the amount of interest for which reduction or waiver has been requested for. The Chief Commissioner of income tax or the Director-General of Income-tax may also impose any other conditions deemed fit for the said reduction or waiver of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejudicially affecting the rights of the parties should not be withdrawn or recalled with retrospective effect. (see BASF (India) Ltd. And Another v. W. Hasan, Commissioner of Income-Tax And Others [2006] 280 ITR 136 (Bom), Commissioner of Income-Tax v. B.M. Edward, India Sea Foods [1979] 119 ITR 334 (Kerala), Commissioner of Income Tax v. N.T. Ramarao (H.U.F.) [1984] 163 ITR 453 (AP).). 7. In these circumstances, we cannot agree with the reasoning given by the Chief Commissioner of Income Tax (Central) that the application for waiver of interest dated 16.11.2006 should be decided in terms of and as per the Board's instruction dated 26.06.2006 and not in terms of the Board's Circular/instruction dated 23.05.1996. There are several reasons s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is entitle to waiver of some/proportionate interest under Section 234C in terms of the Boards Circular dated 23.05.1996. On the question of quantum, we feel that the assessee had also earned interest on the FDRs and the same was paid to the assessee. However on the interest amount, the petitioner/assessee would be liable to pay income tax as income had accrued. 11. Keeping in view the aforesaid aspects, we feel that the assessee is entitled to waiver of interest under Section 234C to the extent of 40% for the Assessment Year 1999-2000 in respect of installment due and payable on 15.12.1998 and 15.03.1999. 12. As far as Assessment Year 2000-2001 is concerned, we notice that the application for waiver of interest was made on 16.11.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey had estimated the advance tax liability as Rs.8.9 crores out of which Rs.2 crores had to be paid as the first installment. They requested for release of the seized FDRs totaling Rs.6.9 crores towards appropriation of the advance tax liability. There was no response or reply to this letter. For the assessment year 2000-01, the advance tax of Rs.1 crore was paid on 14.6.1999 and subsequently advance tax of Rs.8 crores was paid in two installments on 9.9.1999 and 22.10.1999. These payments were made after the FDRs were released. There is no dispute about payment of advance tax installments on 15.12.1999 and 15.3.2000. 14. In view of the aforesaid position and in view of the same reasons as recorded for the assessment year 1999-2000, we hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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