1998 (11) TMI 96 - HC - Income Tax

Summary

Issues:
Assessee's entitlement for waiver of interest under Income-tax Act, 1961.

Analysis:
The judgment pertains to an assessee under the Income-tax Act, 1961, who filed revised returns voluntarily, disclosing varying incomes for the assessment year 1987-88. The assessing authority demanded a balance tax amount, which the appellant paid after the assessment order. The appeal challenges the dismissal of a writ petition seeking waiver of interest levied under sections 139 and 217 of the Act.

The main contention was whether the appellant, by complying with the conditions of section 273A(1)(iii)(c), was entitled to the waiver of interest. Section 139(8)(a) allows for interest levy if returns are filed late, with provisions for waiver under prescribed circumstances. Similarly, section 217 mandates interest payment when no estimate is made, with specific conditions for waiver.

The court analyzed the conditions under section 273A(1)(iii)(c) for waiver eligibility. It required the filing of revised returns voluntarily before notices under sections 139(2) and 148 were issued, with self-assessed tax payment along with the revised return. Additionally, the difference in tax as assessed had to be paid within the time prescribed after the assessment order.

In this case, the appellant paid the self-assessed tax along with the second revised return, followed by the balance amount demanded by the assessing authority within the stipulated time. Consequently, the appellant fulfilled the conditions specified in section 273A(1)(iii)(c) and was deemed eligible for the waiver of interest. The court set aside the previous orders, allowing the appellant's application for waiver and declaring entitlement to the interest waiver under sections 139 and 217 of the Act.

In conclusion, the judgment highlights the importance of meeting specific statutory conditions for interest waiver under the Income-tax Act, emphasizing voluntary compliance with tax obligations and timely payments as crucial factors in determining an assessee's eligibility for relief from interest levies.