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TMI Blog2003 (1) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... en Chief CIT partially waived the interest and his order became final under the provisions of s. 273A(5) of the IT Act. The facts of the case are that the Government had acquired the agricultural land owned by the assessee on 12th July, 1984. The assessee was awarded compensation by the Land Acquisition Officer on 20th Nov., 1985. However, the compensation awarded was challenged before the Punjab and Haryana High Court. The Hon'ble High Court enhanced the compensation vide its order dt. 15th April, 1991. Both the parties approached the Supreme Court against the judgment of the Punjab and Haryana High Court and the Supreme Court confirmed the judgment of Punjab and Haryana High Court vide its judgment dt. 9th Aug., 1991. Subsequently, the La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quantified and assessee received the enhanced compensation along with the interest that the assessee became liable to tax in respect of interest income. Therefore, by relying on the various judgments reported in 4 ITR 276, 207 ITR 133 (Raj), 198 ITR 66 (Raj), Smt. S. Mageshwari vs. Asstt. CIT (1993) 109 CTR (Kar) 301 : (1993) 201 ITR 472 (Kar), CIT vs. Triple Crown Agencies (1994) 116 CTR (Gau) 423 : (1993) 204 ITR 377 (Gau), S.M. Kabeer vs. ITO (1995) 216 ITR 359 (Mad) and the judgment of Hon'ble Supreme Court in the case of Central Provinces Manganese Ore Co. Ltd. vs. CIT (1986) 58 CTR (SC) 112 : (1986) 160 ITR 961 (SC), the assessee contended that appeals before the CIT(A) were admissible because the assessee denied its liability of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Kumar Cement House (1992) 195 ITR 474 (P H). 6. The learned counsel for the assessee, on the other hand, strongly relied on the order of the CIT(A). He submitted that s. 273A refers to waiver of penalty. This section does not deal with the cases of waiver of interest. He submitted that on the basis of representations received from the various assessees, the CBDT vide its abovementioned circular had directed the Chief CITs/Director Generals of Income-tax to waive interest charged under ss. 234A, 234B and 234C in cases where income other than capital gains is received or accrued after due date of payment of the first and subsequent instalments of advance tax, which was neither anticipated nor was in the contemplation of the assessee. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the AO on the ground that liability under s. 234B was not attracted. The assessee also filed application before the Chief CIT for waiver of interest. The Chief CIT partially waived the interest for the asst. yrs. 1989-90 to 1993-94. We also find from a copy of the order of Chief CIT that he did not impose any condition while disposing of assessee's application for waiver of interest. As per CBDT's Circular dt. 23rd May, 1996, the Chief CIT could have imposed any other conditions deemed fit while allowing reduction/waiver of interest. But no such condition was imposed. 8.1 As regards s. 273A(5) of the IT Act, the same deals with waiver of penalties. Earlier, sub-cl. (iii) of sub-s. (1) of s. 273A provided that Chief CIT could reduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application under s. 18(2A) before the CWT for waiver of penalty. The CWT reduced the penalty to Rs. 5,000. However, while passing the order for giving effect to the order of CWT, the AO mentioned as if he had passed the order. On these facts, the Hon'ble Punjab and Haryana High Court held that the order passed by the CWT under s. 18(2A) was not appealable in view of specific provisions of s. 18B(5). However, in the present cases, we have already stated that interest has not been reduced under s. 273A of the IT Act. Same are the facts in the case of CWT vs. Ravi Kumar Cement House. There also, penalty levied under s. 18(1)(a) was reduced by the CWT under s. 18B. On these facts, the Hon'ble Punjab Haryana High Court held that such order wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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