665/CBDT. - Income Tax - 665/CBDT

INSTRUCTION NO. 665/CBDT Dated : March 6, 1974 Section(s) Referred: 217(1A) , Rule 40(5) of IT Rules Statute: Income - Tax Act, 1961 Rule 40(5) of the Income-tax Rules, 1962 empowers the Inspecting Assistant Commissioner to reduce or waive interest payable under section 215 or section 217 in any case where the circumstances justify such an action. The Board desires that the Inspecting Assistant Commissioners should exercise their discretion in favour of the assessee where continuation of registration is refused by the Income-tax Officer at the time of making regular assessment and they should reduce or waive interest chargeable under section 217(1A) to the extent of the interest on difference between (i) the tax demanded under section 210 or paid according to their own estimate under section 212 in the status of registered firm and (ii) the tax computed in the status of URF on the income on which advance tax was demanded under section 210 or that shown in the estimate filed by the assessee under section 212 as the case may be.