Reduction or waiver of interest charged under section 234A/234B/234C - Modification in Order F. No. 400/234/95-IT(B), dated 23-5-1996 - F. No. 400/234/95-IT(B), - Income Tax

Reduction or waiver of interest charged under section 234A/234B/234C - Modification in Order F. No. 400/234/95-IT(B), dated 23-5-1996 Order F. No. 400/234/95-IT(B), dated 30-1-1997 . The Board has issued an order vide F.No. 400/234/95-IT(B), dated 23rd May, 1996, indicating the class of income or class of cases in which reduction or waiver of interest under section 234A, 234B or 234C as the case may be, could be considered by Chief Commissioner of Income-tax and Director General of Income-tax. Clause " d " of para 2 of the said order read as under : "Where any income which was not chargeable to income-tax on the basis of any order passed in the case of an assessee by the High Court within whose jurisdiction he is assessable to income-tax, and as a result, he did not pay income-tax in relation to such income in any previous year and subsequently, in consequence of any retrospective amendment of law or as the case may be, the decision of the Supreme Court, in his own case, which event has taken place after the end of any such previous year, in any assessment or re-assessment proceedings the advance tax paid by the assessee during the financial year immediately preceding the relevant assessment year is found to be less than the amount of advance tax payable on his current income, the assessee is chargeable to interest under section 234B or section 234C and the Chief Commissioner or Director General is satisfied that this is a fit case for reduction or waiver of such interest." 2. In partial modification of this para of the Order, the Central Board of Direct Taxes has decided that there shall be no condition that the decision of the High Court or the Supreme Court, as referred to therein, must be given in the assessee's own case. Also the condition that any retrospective amendment of law or the decision of the Supreme Court or the jurisdictional High Court must have been made after the end of the relevant year stands withdrawn. 3. If any petition in the past has been rejected because the Board had not issued this modification, the same may be reconsidered and decided in accordance with this modification read with the order dated 23rd May, 1996.