1998 (6) TMI 72 - HC - Income Tax

Summary

Issues: Challenge to order of Chief Commissioner for waiver of interest under sections 234A, 234B, and 234C of Income-tax Act for assessment year 1992-93.

The judgment of the High Court of Andhra Pradesh pertained to a challenge against the order of the Chief Commissioner of Income-tax concerning the waiver of interest under sections 234A, 234B, and 234C of the Income-tax Act for the assessment year 1992-93. The Central Board of Direct Taxes had issued an order empowering the Chief Commissioner to reduce or waive interest in specified cases, subject to conditions. The petitioner contended that their case fell under a specific clause of the order related to filing a return of income voluntarily under unavoidable circumstances. However, the Department argued that the return was not voluntary as it was filed after a notice under section 148. The petitioner also argued that the Chief Commissioner should have passed a reasoned order, citing a previous court decision and emphasizing the contradictory nature of the rejection. The High Court found that the Chief Commissioner's order lacked proper consideration of the facts and was legally flawed. The Court set aside the order and directed a fresh consideration by the Chief Commissioner, emphasizing the need for a reasoned decision. The Court also ordered a stay on interest recovery until the fresh decision is made, disposing of the writ petition without costs.