1999 (2) TMI 52

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Income-tax Act, 1961, in respect of the assessment years 1984-85 to 1986-87 have been assailed in these petitions. The petitioners submitted for waiver of interest were rejected by an order passed under rules 40 and 117A. The dispute is in respect of the premium received on sale of import entitlement which by retrospective amendment by the Finance Act, 1990, was made liable to tax. There was anot .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y cannot be fastened. Reliance is placed on the judgment given in CIT v. Pure Beverages Ltd. [1995] 214 ITR 57 (Guj), where it was found that if there is a reasonable cause interest is not chargeable. Arguments of both learned counsel for the parties have been heard. Section 139(8) provides charging of interest with a proviso that the Assessing Officer may, in such case and such circumstances as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... would be sufficient cause for not charging the interest under section 139(8). In these circumstances, the interest levied in respect of income because of retrospective amendment for sale of import entitlement requires complete waiver. Section 217 of the Act charges the assessee with liability of interest when no estimate is made. Rule 40 provides the circumstances in which the interest could be w .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X