2012 (3) TMI 138 - HC - Income Tax

Waiver of interest under 234A,B,C and interest under 220(2) - Held That - Default has occurred for reasons due to unavoidable circumstances, no details thereof have been furnished and this factual issue was not established before, denial of the request for waiver of interest cannot be said to be against the provisions of the notification. For waiver under 220 - apart from pleading that nonpayment of tax was due to reasons beyond the control of the assessee, the assessee has not established this factual question. Reliance placed on GTN Textile Ltd (1993 -TMI - 18908 - KERALA High Court). - Decided against the assessee.

Summary

Issues:
Challenge to orders rejecting waiver of interest under Section 234A, B, C and Section 220(2) of the Income Tax Act.

Analysis:
1. Waiver under Section 234A, B, C:
The petitioner challenged Ext.P5 order rejecting waiver of interest under Section 234A, B, C. The court noted that waiver is permissible only as per the notification issued by the Board. The notification allows waiver under specific circumstances, such as when the return of income could not be filed due to unavoidable circumstances. The court found that the petitioner failed to provide details justifying the request for waiver, as required by the notification. The court upheld the denial of waiver as the factual circumstances justifying the delay were not established by the petitioner.

2. Waiver under Section 220(2):
Regarding Ext.P6 order rejecting waiver of interest under Section 220(2), the court referred to Section 220(2)(A) which specifies the circumstances to be established by the assessee for claiming waiver. Citing a previous judgment, the court emphasized that all specified circumstances are cumulative and must be proven by the assessee. The petitioner claimed nonpayment was beyond their control but failed to establish this factual question or meet the conditions specified in Section 220(2)(A). Consequently, the court found the decision of the 1st respondent in Ext.P6 order to be legally sound.

In conclusion, the court dismissed the writ petition, finding no merit in the challenge against the orders rejecting waiver of interest under Section 234A, B, C and Section 220(2) of the Income Tax Act.