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2024 (4) TMI 805 - HC - Income TaxWaiver of interest u/s 234A, 234B and 234C - marginal delay in filing the returns - HELD THAT - The stand of the petitioner that the petitioner was entitled for waiver of interest u/s 234A for the AY 2008-2009 and 2009-2010 on similar for the AY 2005-2006 and 2007-2008 deserves to be accepted, as there is only marginal delay in filing the returns after the Audit Report was received by the petitioner from the Office of Joint Director of Cooperative Audit on 22.03.2011 for the AY 2008-2009 and on 31.01.2012 for the AY 2009-2010. The returns for these years were filed by the petitioner on 31.05.2011 and 02.04.2012, respectively. Therefore, to the extent of rejection of waiver of interest u/s 234A is concerned, the impugned order warrants interference, by granting waiver to the petitioner. Therefore, the interest u/s 234A deserves to be waived and therefore, this Writ Petition deserves to be allowed to that extent. Interest u/s 234B and 234C - They pertain to belated payment of advance tax under Section 210 within the stipulated period under Section 211 of the Income Tax Act, 1961. No case is made out by the petitioner for waiver of interest notwithstanding the reason stated by the petitioner in the affidavit. CBCT Circular No.400/129/2002-IT(B), dated 26.06.2006, does not specifically deal with waiver of interest u/s 234B and 234C of the Income Tax Act, 1961. There were no impediments operating against the petitioner from paying the advance tax within the time line under Section 211 of Income Tax Act, 1961. The decision of this Court in Tvl.Sanmac Motor Finance Ltd. case 2020 (2) TMI 1182 - MADRAS HIGH COURT which was relied by the learned counsel for the petitioner as also by the learned Senior Standing Counsel for the respondents, has not given a complete waiver of interest under any of the provisions although partial waiver was allowed. That apart, the payment of interest on the tax that was payable on the date specified in Section 211 is axiomatic in the sense it has to be paid by the due date prescribed under the Statute and therefore, there cannot be any waiver either on the ground of equity or on a reading of the above Circular dated 26.06.2006, bearing reference No.400/129/2002-IT(B) or on a reading of the decision of this Court in Tvl.Sanmac Motor Finance Ltd. case cited supra or on a reading of the decision of the Hon'ble Supreme Court in Commissioner of Income Tax, Mumbai vs. Anjum M.H. Ghaswala and others 2001 (10) TMI 4 - SUPREME COURT Writ Petition is partly allowed.
Issues:
The judgment involves the rejection of a petitioner's prayer for waiver of interest under Sections 234A, 234B, and 234C of the Income Tax Act, 1961 by the Chief Commissioner of Income Tax. Details of Judgment: Issue 1: Waiver of Interest under Section 234A The petitioner sought waiver of interest under Section 234A for Assessment Years 2008-2009 and 2009-2010, similar to the waiver granted for 2005-2006 and 2007-2008. The petitioner argued that returns were filed promptly after receiving Audit Reports, justifying waiver. The Court agreed, citing the CBCT Circular and previous judgments, granting waiver for 2008-2009 and 2009-2010. Issue 2: Interest under Sections 234B and 234C The petitioner claimed financial stress due to pending dues and loans, justifying waiver under CBCT Circular. However, the Court found no grounds for waiver of interest under Sections 234B and 234C, emphasizing timely payment obligations under Section 211. Previous judgments were referenced, highlighting the statutory nature of interest payment. Conclusion: The Court partially allowed the Writ Petition, granting waiver of interest under Section 234A for Assessment Years 2008-2009 and 2009-2010. No waiver was granted for interest under Sections 234B and 234C. The decision was based on statutory obligations and previous legal interpretations.
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