TMI Blog2015 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... extent by the appellate forum under the Act, then the finality of the assessment indicates that the amount sustained against the petitioner is the income on which he ought to have been paid tax at the very outset. The levy of interest is compensatory in nature and it is meant to compensate the department for the delay in getting the tax that was due to it. The conduct of the petitioner in the instant case does not call for any lenient view in the matter of levy of interest. - No reason to interfere with order passed - Decided against assesse. - WP(C).No. 25146 of 2010 - - - Dated:- 19-12-2014 - MR. A.K.JAYASANKARAN NAMBIAR, J. FOR THE APPELLANT : ADVS.SRI.T.M.SREEDHARAN, SMT.C.K.SHERIN, SRI.V.P.NARAYANAN FOR THE RESPONDENT : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - added by the Income Tax Officer, the additions sustained on the petitioner pursuant to the appeal was only in an amount of ₹ 39,72,961/-. On the reduced amount, interest under Section 234A, 234B and 220(2) of the Income Tax Act were also levied. The petitioner thereafter preferred applications before the 1st respondent for waiver of the interest under the aforementioned provisions. The 1st respondent by Ext.P5 order dismissed the petitions preferred by the petitioner. In the writ petition, Ext.P5 order of the 1st respondent is impugned, inter alia, on the ground that it does not consider the genuine hardship that was faced by the petitioner in estimating the cost of investment for the purposes of declaration of his income in the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a hotel building was constructed and the business of the hotel commenced during the previous year relevant to the A.Y.2005-06. The investment in hotel building disclosed in the books of accounts was found prima facie far below the actual cost of construction and that no income tax return was filed for the assessment year. Having formed a belief that income has escaped assessment within the meaning of section 147 of the Act, notice u/s.148 was issued by the Assessing Officer on 10-04-2006. The assessee filed a return in response to notice u/s.148 on 22-09-2006 declaring nil total income. The hotel building was referred for valuation and the assessment was made on 07-12-2007 determining the total income at ₹ 96,12,560/- which was modi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest charged u/s.234B is only by way of compensation to the Exchequer for being deprived of the payment of advance tax, to which it was legitimately entitled. There are no enabling provisions to reduce the interest levied on the basis of tax on total income determined in regular assessment. 5. As regards waiver of interest sought for under Board's order u/s.119(2)(a) in F.No.400/29/2002- IT(B) dated 26-06-2006, it is to be pointed out that waiver of interest u/s.234A and u/s.234B can only be considered by the Chief CIT in respect of certain classes of cases or classes of income specified in the second paragraph of the said order. It is claimed by the assessee that its case comes under clause (d) of paragraph (2) of the Board' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also a fact that there was no claim in the petition that the clauses (b) and (c) of paragraph 2 are applicable to the assessee for waiver of interest u/s.234B. The one and only contention is that the case is covered by clause (d). It is noticed in this context that by virtue of paragraph (3) of the above said Board's order, waiver of interest u/s.234B cannot be considered under circumstances mentioned in clause (d) of paragraph (2). Hence, the petition for waiver of interest u/s.234B fails. para 4,5,6 It is seen therefore, that while considering the case of the petitioner for waiver of the interest, the 1st respondent took note of the fact that the petitioner had not fully declared the taxable income while furnishing its returns ..... X X X X Extracts X X X X X X X X Extracts X X X X
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