TMI Blog2020 (1) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, in absence of any power to grant waiver of interest under the provisions of the Interest Tax Act, 1974, the 1st respondent cannot grant waiver to an assessee under the provisions of the said Act. That apart, the authority has also decided that the petitioner was not entitled for waiver under the said circular since Finance Act No.2 of 1991 had extended the scope of interest tax to cover credit institutions and thus financial companies carrying on high purchase transactions were brought within the ambit of the Interest Tax Act, 1974. The petitioner also filed returns but failed to pay tax on such interest. Though, the 1st respondent has denied the benefit of the above circular on merits, it is evident that the said circular ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er was liable to pay tax on interest under the provisions of the Interest Tax Act 1974. The petitioner challenged these orders unsuccessfully before the Commissioner of Income Tax (Appeals) and thereafter before the Income Tax Appellate Tribunal, Chennai. 5.The petitioner has accepted the verdict and has paid the tax for these Assessment Years. Under these circumstances, the petitioner filed a petition before the 1st respondent for waiver of interest for the respective Assessment Years on 05.12.2002. It was the contention of the petitioner that Central Board of Direct Taxes Direct Circular No.1425 bearing reference F-No. 275/9/80-ITB dated 16.11.1981 had instructed that tax need not be deducted on high purchase finance charges as they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me would have to be considered as unavoidable circumstances for the purpose of reduction/waiver of interest under sections 234B and 234C as well. Accordingly, whatever waiver granted under section 234A, shall also be extended with regard to waiver of interest under sections 234B and 234C of the Act. 6. As noticed above, the respondent was satisfied with the fact that the petitioner has made out a case for waiver of interest under section 234A of the Act and the respondent recorded that it is a reasonable cause for delay in filing the return of income. Applying the reasons assigned by the Hon'ble Division Bench of the Gujarat High Court, this Court is of the view that the same reasoning should be adopted while considering the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest under the Income Tax Act, 1961 stems from sub-clause (2) (a) to section 119. The Central Board of Direct Taxes has also delegated such powers in certain cases up to particular amount with the Principal/Chief Commissioner of Income Tax. 12.Since Section 119 of the Income Tax Act has not been incorporated in Section 21 of the Interest Tax Act, 1954, the petitioner cannot claim the benefit of the above circular for waiver of interest. Therefore, in absence of any power to grant waiver of interest under the provisions of the Interest Tax Act, 1974, the 1st respondent cannot grant waiver to an assessee under the provisions of the said Act. That apart, the authority has also decided that the petitioner was not entitled for waiver u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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