TMI Blog2015 (11) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Gujarat in Bhaneben’s case (2004 (3) TMI 35 - GUJARAT High Court) regard being had to the facts obtaining therein over delay in filing the return of income resulting in late payment of taxes, an unavoidable circumstance - Waiver of interest can be considered. The Board, in exercise of powers conferred under clause (a) of sub-section (2) of Section 119 of the Act, has issued a Circular/Notification No. 400/234/95-IT/B dated 23-5-1996, empowering the Chief Commissioner and the Director General, Income Tax, to waive or reduce the interest chargeable under Section 234B and two other sections in the class of cases or class of incomes, specified in paragraph 2 thereof for the period and to the extent the Chief Commissioner/Director Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, stating that the deduction was given wrongly and directed the Petitioner to send objections to the show cause notice. The Petitioner also sent a reply dated 27.5.1999 and claimed deduction under Section 80 JJ of the said Act, which was rejected on the ground that the assessee did not claim relief in the returns filed, in view of the decision of the Honourable Supreme Court reported in 237-ITR-174 (CIT Vs. Shri Venkateswara Hatcheries P Limited), which was rendered on 24.3.1999 reversing the earlier judgement of the Andhra Pradesh High Court reported in 174-ITR-231. Accordingly, the Assessing Officer levied interest under Sections 234B and 234C of the said Act viz. (1) for the assessment year 1996-97, ₹ 11,226/- and (2) for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the order of the Andhra Pradesh High Court and not because of the reversal of any decision given by the jurisdictional High Court of Madras and hence, the assessee is not entitled to waiver of interest levied under Sections 234B and 234C of the said Act, as claimed and accordingly, the petition for waiver of interest filed by the Petitioner was rightly rejected. 5. This court heard and considered the submissions made by the learned counsel on either side and also perused the materials placed on record. 6. The short facts in a nutshell are that the Petitioner filed income tax returns for assessment years 1996-97 and 1997-98 and claimed deduction under Section 80 IA of the Income Tax Act, 1961 and the same were accepted under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts of the case that the respondent has failed to give any reason for retaining the interest to the extent of ₹ 1 lakh, while holding that, in the circumstances, interest charged under section 234Bof the Act should be waived partly under clause (d) of the Circular No. F.No.400/234/95-IT(B) dated 23/5/1996 reported in (1997) 225 ITR (Statute) 101. The reason about non-availability of a judgement of jurisdictional high court cannot be termed to be a valid reason in the facts of the case, considering that the amendment, though by Finance Act, 1990, was made retrospectively applicable from 1-4-1967. 10. In 2004-188-CTR-Guj-449 (Bhanuben Panchal and Chandrikaben Panchal Vs. Chief Commissioner of Income Tax), it has been held thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aive or reduce the interest chargeable under Section 234B and two other sections in the class of cases or class of incomes, specified in paragraph 2 thereof for the period and to the extent the Chief Commissioner/Director General deem fit, subject to fulfilment of the conditions enumerated therein. 12. In view of the settled law, as has been laid down in the decisions cited supra, the impugned orders are set aside and the matters are remanded back to the Respondent for fresh consideration in the light of the decisions cited supra. Such an exercise shall be completed within a period of four weeks from the date of receipt of a copy of this order, after affording an opportunity to the Petitioner. 13. With the above directions, this Wri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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