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2015 (11) TMI 808 - MADRAS HIGH COURT

2015 (11) TMI 808 - MADRAS HIGH COURT - TMI - Waiver of interest under Sections 234B and 234C - Held that:- As decided in UB Global Corporation Limited Vs. Chief Commissioner of Income Tax [2013 (5) TMI 126 - KARNATAKA HIGH COURT] the decision of incidence and applicability of Income Tax under the Act, need not necessarily be in the case of the assessee, but could be in any other case i.e. of any other assessee or otherwise. As long as the decision covers the field of Income Tax legislation, as .....

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red 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 General deem fit, subject to fulfilment of the conditions enume .....

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Respondent in F.No.2006 (130) 2000-2001, to quash the impugned order dated 28.1.2003 and to direct the Respondent to grant relief for the assessment years 1996-97 and 1997-98. 2. The case of the Petitioner is that the Petitioner is a Partnership Firm and is engaged in the business of poultry farming and hatcheries. The relevant assessment years are 1996-97 and 1997-98 and the corresponding accounting year ended on 31.03.1996 and 31.03.1997. For all the years, the Petitioner filed income tax ret .....

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tions 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, t .....

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interest levied under Section 234B and 234C of the Act. However, the Respondent, without considering the real scope of the said Circular, by the impugned order, rejected the waiver petition. Hence, these Writ Petitions have been filed for the reliefs as stated above. 3. The learned counsel for the Petitioner contended that once the Honourable Supreme Court declares law, it is binding on all the assessees and merely because it is not assessee's own case, it is not correct to say that only the .....

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Standing Counsel for the Respondent submitted that the liability to pay interest arose as a result of the decision of the Honourable Supreme Court reversing 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 .....

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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. However, the Assessing Officer levied interest under Sections 234B and 234C, against which Petitioner filed a waiver petition to the Respondent, which was rejected by the impugned order. 7. The issue of waiver of interest has been settled in a catena of decisions of various High Courts as well as .....

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ther case i.e. of any other assessee or otherwise. As long as the decision covers the field of Income Tax legislation, as may be applicable to any assessee, 'would be a circumstance for reduction of waiver of interest under Section 234 A to C as the case may be." 9. In 2006-203-CTR-Guj-48 (Devarsons (P) Limited Vs. U.P.Singh), it has been held as under:- "6. It is apparent from the facts of the case that the respondent has failed to give any reason for retaining the interest to the .....

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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:- "7. It is thus clear that clauses (a) to (a) all state the circumstances beyond the control of the assessee and they may be considered as the species or illustrations of unavoidable circumstances or circumstances beyond the control of the assessee which is the genus contained in clause (e) providing that where a return of income could not be f .....

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