1995 (3) TMI 27 - HC - Income Tax

Summary

Issues:
1. Levy of interest under section 139(8) of the Income-tax Act, 1961 for delay in filing the return.
2. Rejection of waiver request for interest charged under section 139(8).
3. Challenge of the Commissioner's order in a writ petition.

Analysis:
1. The petitioner failed to file the return for the assessment year 1977-78 on time, resulting in interest being levied under section 139(8) of the Income-tax Act. Despite multiple extensions granted, the return was filed late, leading to the assessment order and subsequent rectifications. The petitioner objected to the interest levy, citing reasons for the delay, but these were deemed insufficient by the authorities. The objections were overruled, and the interest amount was increased to Rs. 44,160, which was not challenged by the petitioner at that stage.

2. The petitioner later sought a waiver of the interest charged under section 139(8) through a communication dated January 17, 1983, reiterating the reasons previously provided. However, the request for waiver was rejected by the Income-tax Officer, and subsequent appeals and revisions also upheld the decision. The Commissioner dismissed the revision application on grounds of limitation and lack of merit, as the petitioner had already raised and failed to substantiate the delay reasons during the assessment process.

3. The writ petition challenged the Commissioner's order, arguing against the limitation aspect and contending that the revision application was timely. The court analyzed the provisions of section 139(8) and rule 117A of the Income-tax Rules, emphasizing that once the petitioner's reasons for delay were considered and rejected during the assessment proceedings, a separate application under rule 117A could not be entertained. The court upheld the Commissioner's decision, stating that the revision was effectively against the original order levying interest and was time-barred. Additionally, the court noted that since the petitioner had not raised the issue of interest before the Tribunal, seeking waiver through rule 117A was not permissible.

In conclusion, the court dismissed the writ petition, affirming the Commissioner's order and emphasizing that the petitioner's failure to establish sufficient cause for the delay in filing the return led to the justified levy of interest under section 139(8) of the Income-tax Act.