TMI Blog2019 (1) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... alculare interest for the period starting from August 1998 upto 11th January 1999 on the undiclosed income in terms of Section 158 B & A of the Income Tax, Act, 1961 and pay the same within 4 weeks from the date of receipt of a copy of this order and report compliance to the respondent. (ii)Accordingly, Levy for the interest for the period prior to August, 1998 in filing returns stands set aside in the both the cases. (iii)Respondents shall thereafter close the respective files. No costs. Consequently, connected miscellaneous petition is closed. - W.P.Nos.32649 & 32650 of 2008 And M.P.No.1 of 2008 - - - Dated:- 22-11-2018 - Mr. Justice C. Saravanan For the Petitioner : Mr.M.D.Senthil Kumar For the Respondents : M/s.Hema Muralikrishnan COMMON ORDER By this common order the following two Writ petitions are being disposed:- i) W.P.No.32649 of 2007 filed by the petitioner viz., L.Poonam Chand Sharma for a writ of certiorarified mandamus to call for the records of the first respondent in C.No.4005/(137)/CCIT-IV/2003-04 dated 06.06.2007 and quash the same insofar as it seeks to deny waiver of interest under section 158 BFA (1) of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners. 10. According to the respondents, the last communication that was addressed by the petitioners were on 11.03.98 for furnishing the documents and thereafter the documents have been served immediately though the petitioner would state that the documents were furnished only the month of July 1998 and therefore there was bonafide delay in filing the returns. There is no clarity as to when the copies of seized documents were served. Copies of the notice dated 12.05.1997 and 15.05.1997 issued under Section 158 BC have not been filed along with the typed set. 11. On 12.01.1999, returns were filed by the respective petitioners. By two separate orders dated 29.01.1999, the second respondent completed the assessment and the income as mentioned above. However, no interest was levied. 12. Thereafter, intimation under Section 143(1)(a) of the Act was issued by the 2nd respondent on 14.01.1999 to the respective petitioners, wherein amounts paid and adjusted as that were shown. 13. On 14.05.1999, notices were issued to the petitioners under Section 154 of the Act, to demand interest at 2% under Section 158 to BFA (1) of the Act on the ground that only on 12.01.1999 returns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under clause (c) of section 158bC, for every month or part of a month comprised in the period commencing on the day immediately following the expiry of the time specified in the notice, and a) Where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return: or b) Where no return has been furnished, on the date of completion of assessment under clause (c) of section 158 BC . 20. The petitioner s claim that the Central Board of Direct Taxes by their order in S.No.286/137/2002-IT (Inv.II) dated 01.06.2003 has laid on the conditions for waiver of interest chargeable under section 158 BFA of the Income Tax Act, 1961 and therefore was entitled for waiver of interest. 21. The petitioner has drawn any attention to the decision of the Karnataka High Court in the case of the Commissioner of Income Tax Versus Smt. Sire Kanwar Bai (2011) 330 ITR 0134 and the decision of the Division Bench of this Court in K.Balan versus Deputy Commissioner of Income Tax (2018) 93 Tax man.com 452. 22. Countering the argument, the learned counsel for the Income Tax Department submits that the petitioners are guilty of delay in filing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remanded back to the 2nd respondent for quantification. 31. The provision as it stands does not contemplate waiver of interest. Interest is payable under the following circumstances:- i) Where the return is furnished after the expiry of the time aforesaid, ending on the date of furnishing the return: or ii)Where no return has been furnished, on the date of completion of assessment under clause (c)of section 158 BC . 32. In Para of 13 and 14 in K .Balan versus Deputy Commissioner of Income Tax (2018) 93 Taxman.com 452 relied by both the counsel, it was held as under:- 13. We are convinced to take a stand in favour of the assessee for the reason that the assessee was requesting for copies of the seized documents for nearly a year and the copies of those documents were furnished to the assessee between 18.06.1999 to 22.06.1999. Thus, the question would be as to how the interregnum period should be treated for the purpose of levying interest under section 158BFA(1). 14. On a reading of statutory provision one gets an impression that no such plea is entertainable and limitation does not stop and continues to run upon issuing notice under section 158BC. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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