2002 (12) TMI 63 - HC - Income Tax

Claim of waiver of interest under section 139(8) denied by the Commissioner. - Commissioner has stated in his order that the Income-tax Officer has stated in his report that the disclosure by the assessee was voluntary prior to the issue of any notice and it was done in good faith. The assessee also cooperated during the assessment proceedings. If the conditions mentioned in clause (c) of section 273A(1) are satisfied some relief has to be given to the assessee, though that relief may either be total waiver of interest or reduction of interest depending upon the facts of the case. However, the Commissioner cannot totally reject the waiver application if the conditions mentioned in clause (c) of section 273A(1) are satisfied. - For the reasons given above this writ petition is allowed, the impugned order dated July 19, 1984, to the extent that it rejected the petitioner s application for waiver of interest under section 139(8) is set aside, and the matter is remanded to the Commissioner

Summary

The High Court of Allahabad allowed a writ petition challenging the Commissioner of Income-tax's order denying waiver of interest under section 139(8) of the Income-tax Act, 1961. The court emphasized that relief must be given if conditions in section 273A(1)(c) are met, with the Commissioner having discretion in granting total or partial waiver. The court set aside the impugned order and remanded the matter for a fresh decision by the Commissioner. (Case citation: 2002 (12) TMI 63 - ALLAHABAD High Court)