TMI Blog2012 (9) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... ained in the circular. As this aspect has not been considered in the present case by the High Court in its impugned order it need to be set aside directing the Tribunal to consider whether the assessee would be entitled to waiver of interest under the Circular - in favour of assessee by way of remand. - CIVIL APPEAL NO. 1937 OF 2007 - - - Dated:- 6-9-2012 - S.H. KAPADIA, MADAN B. LOKUR, JJ. ORDER Heard learned counsel on both sides. 2. The short point involved in the present case is whether levy of interest under Section 234A/234B of the Income Tax Act, 1961, [for short, 'the Act'], is mandatory or not. At one point of time there was a doubt on the nature of interest payable by the assessee under Section 234A/234B of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... citation by the Assessing Officer directing institution of penal proceedings is not obligatory and penal proceedings could be initiated for such default without a specific direction from the Assessing Officer. In this particular case we have to follow the judgment in Anjum Ghaswala's case ( supra ) in toto. In the said judgment it has been held that in appropriate cases, the Chief Commissioner has an authority to waive the interest. We quote herein below the relevant portion of the judgment in Anjum Ghaswala's case ( supra ), which reads as under: "The learned Solicitor General has pointed out that by virtue of the power vested in the Board under Section 119(2)(a) of the Act, the Board has issued circulars by Notification No. F. No.40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the process of settlement. 4. For the reasons stated above, we hold that the Commission in exercise of its power under Section 245D(4) and (6) does not have the power to reduce or waive interest statutorily payable under sections 234A, 234B and 234C except to the extent of granting relief under the circulars issued by the Board under Section 119 of the Act." 5. In the present case, the assessee is placing reliance on the Circular issued by the CBDT, which has been referred to and mentioned in the above extracted portion in Anjum Ghaswala's case ( supra ). This aspect has not been considered in the present case by the High Court in its impugned order. It has not been considered even by the Tribunal. 6. For the above reasons, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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