TMI Blog2015 (5) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Any income chargeable to income-tax under any head of income, other than “Capital Gains” is received or accrued after due date of payment of the first or subsequent instalments of advance tax which was neither anticipated nor was in the contemplation of the assessee, and the advance tax on such income is paid in the remaining instalment or instalments, and the Chief Commissioner/Director General is satisfied on the facts and circumstances of the case that this is a fit case for reduction or waiver of the interest chargeable under section 234C of the Income-tax Act. (c) Where any income was not chargeable to income-tax in the case of an assesse on the basis of any order passed by the High Court within whose jurisdiction he is assessab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed returns claiming the benefit of carried forward loss of ₹ 6,42,65,257/-, worked out its book profit at ₹ 3,61,32,102/- and offered the same for taxation under Section 115J of the Act. The first respondent while completing the assessment levied interest under Section 234C of the Act on the ground that there was shortfall in the payment of advance tax. The petitioner had though challenged the assessment order before the first appellate authority, the levy of interest under Section 234C of the Act was upheld by the first appellate authority and the said decision of the first Appellate Authority was confirmed by the Income Tax Appellate Tribunal. Thereafter, the petitioner filed a petition before the second respondent seeking wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be determined before the end of the relevant assessment year, the petitioner is not obliged to pay interest under Section 234C of the Act for non-payment of advance tax on the book profit. 5. Section 119 (1) and 119(2)(a) of the Act reads thus : 119. (1) The Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board: Provided that no such orders, instructions or directions shall be issued - (a) so as to require any income-tax authority to make a particul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Board of Direct Taxes and it is based on the general or special orders issued by the Board, the other income tax authorities are exercising the power of waiver. It is also clear from the aforesaid Sections that the income tax authorities other than the Board are empowered and authorised to waive interest only in accordance with the guidelines, principles and procedures specified by the Board in general or special orders issued by the Board. The classes of incomes and cases in respect of which the Chief Commissioner of Income Tax is authorised to waive interest payable under Section 234C of the Act as per notification dated 26/6/2006 referred to in Ext.P4 order, which was made available to me by the Standing Counsel for the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a fit case for reduction or waiver of such interest. As stated above, the second respondent is empowered and authorised to waive interest payable by the petitioner under Section 234C of the Act only if the case of the petitioner falls under any of the two classes of cases referred to above. The petitioner has no case that its case would fall under the said classes of cases. The contention raised by the learned counsel for the petitioner that since the book profit cannot be determined before the end of the relevant assessment year, the assessees are not obliged to pay interest under Section 234C of the Act for non-payment of advance tax on the book profit also cannot be accepted, for, the question whether the petitioner is liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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