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2010 (10) TMI 172 - HC - Income TaxInterest - The interest has been charged on the ground that the petitioner has not deposited advance tax as required under section 44 AC of the Act - In the light of the law laid down by the Hon ble Apex Court in the case of Sanyasi Rao, the liability of the tax was much less than advance tax ought to have been deposited under section 44AC - Therefore the petitioner was entitled for the waiver of the interest and this aspect of the matter has not been considered by the respondent while disposing of the application for the waiver - The writ petition is, accordingly, disposed of
Issues:
Challenge to order rejecting waiver of interest under section 234-B of the Income Tax Act based on a notification by Central Board of Direct Taxes. Consideration of liability of tax and advance tax under section 44AC for a business of country liquor. Analysis: The petitioner challenged the order dated 12.5.2005 by the Chief Commissioner, Income Tax, Meerut, under section 119(2)(a) of the Income Tax Act, rejecting the waiver of interest under section 234-B. The petitioner, engaged in the business of country liquor, was charged interest for not depositing advance tax as required under section 44AC. The petitioner argued that after a fresh assessment order based on books of accounts, the tax liability was less than the advance tax supposed to be deposited under section 44AC, making them eligible for interest waiver. The High Court noted that the Chief Commissioner did not consider this argument while disposing of the waiver application. Upon perusing the impugned order, the Court found it necessary for the Chief Commissioner of Income Tax, Meerut to reconsider the matter. Consequently, the order dated 12.5.2005 was set aside, and the case was remanded to the Commissioner of Income Tax, Meerut, with directions to decide the waiver application afresh within three months from the date of the petitioner submitting a certified copy of the order within three weeks. The writ petition was disposed of accordingly.
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