TMI Blog1981 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, for filing belated return and concealment of income. Aggrieved by the imposition of interest under s. 139(8)(a) and s.217(1A) of the Act, the petitioner-assessee preferred two revision applications to the Commissioner, 1st respondent herein, inter alia, contending that the order was bad inasmuch as there was no proposition first to levy such interest; that there was no hearing given to the petitioner-assessee before the interest was levied, that the denial of a hearing to the assessee deprived the petitioner of his right under r. 117A(v) of the I.T. Rules, 1962 (hereinafter referred to as " the Rules "), to get the interest waived or reduced showing sufficient cause for not furnishing the return in time. The Commissioner disposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion of the assessment under section 144, on the amount of the 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: Provided that the Income -tax Officer may, in such cases and under such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section ........ (rest of the section not necessary for our purpose). The reading of the section makes it clear that the concerned assessing officer is bound to consider cases and circumstances under which the interest chargeable under sub-s. (8)(a) of s. 139 of the Act is liable to be reduced or waived. While the section itself does not provide for the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceeded against under that section, no penalty can be imposed on him. Regard being had to the cumulative effect of s. 139(8)(a) of the Act and r. 117A(v) of the Rules, one has necessarily to infer that the assessing officer is under an obligation to afford an opportunity to the assessee as to why interest should not be charged unless sufficient cause is shown for the delay in filing the return. Mere mechanical computation of the interest without informing the assessee that such interest is being charged would totally deprive the assessee of explaining the delay in filing the return. Therefore, on the well-established principles of construction of a taxing statute, while it must be construed strictly, whenever the construction offers mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year late, has been accepted by the Commissioner as reasonable cause for the purpose of s. 271(1)(a) of the Act. No doubt, as already pointed out, the language used in r. 117A(v) of the Rules is sufficient cause, but it cannot be argued that what is a reasonable cause is not a sufficient cause. If the Commissioner came to the conclusion that it was a reasonable cause in relation to s. 271(1)(a) of the Act, the reasoning that the Government was deprived of the use of the tax payable by the assessee for a given period should outweigh the reasonableness of it in extending that benefit to levy of interest under s. 139(8)(a) of the Act, does not appear to be logical. If it is reasonable for giving relief to the assessee under a penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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