TMI Blog1994 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 154, when no such charge had been made in the original assessment passed under section 143(1) ? " The material facts relevant for deciding the above question are that the assessee is a partnership-firm and the assessment was completed under section 143(1) of the Income-tax Act on October 4, 1983. While passing the said order, interest under section 139(8) of the Act was not charged from the assessee. Proceedings under section 154/155 were initiated and an objection was taken that since the order of assessment has not directed to charge interest under section 139(8), which must be presumed to have been waived and, which being a disputed point, interest cannot be charged by invoking the provisions of section 154/155 of the Act. The Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specified date to the date of the furnishing of the return, or, where no return has been fur nished, the date of completion of the assessment under section 144, on the amount of tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source. The proviso has further authorised the Income-tax Officer, in such cases and under such circumstances as may be prescribed, to reduce or waive the interest payable by any assessee under this sub section. The use of the words " shall be liable " under section 139(8) leaves no discretion with the assessing authority not to charge the interest subject to the other conditions of the said clause. The proviso which is by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of interest would be a mistake apparent from the record. Rule 117A has contemplated that the power of reduction or waiver could be exercised only with the previous approval of the Deputy Commissioner of Income-tax, where the amount of interest exceeds Rs. 1,000 in cases covered by clauses (iv) and (v) of rule 117A. It shows that the Income-tax Officer has no power to reduce or waive the interest, where the amount of interest chargeable exceeds Rs. 1,000. The failure on the part of the Income-tax Officer, to charge the interest there for is contrary to the provisions of the Act, and is liable to be rectified under section 154 of the Act. This court in the case of Golecha Properties (P.) Ltd. v. CIT [1988] 171 ITR 47 has held that the penal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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