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TMI Blog2012 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on or about 15.03.1999 and an amount of Rs.1.5 crores was paid as advance tax on the said date - assessee is entitle to waiver of some/proportionate interest under Section 234C in terms of the Boards Circular dated 23.05.1996 - interest waived to the extent of 40%. - W.P.(C) 8441/2007 - - - Dated:- 26-3-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V.EASWAR, JJ. For Appellant: Mr. Ajay Vohra with Ms. Kavita Jha, Advs. For Respondent: Mr. Kiran Babu, Sr. Standing Counsel. O R D E R Super Cassettes Industries Ltd. has filed the present writ petition for quashing order dated 08.06.2007 passed by the Chief Commissioner Income Tax (Central) under Section 234C read with Section 119(2) of the Income Tax Act, 1961 (Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not tenable. Further, the assessee s case for waiver of interest U/s 234C also does not stand covered in the light of existing instruction dated 26.6.2006. The case laws cited by the Ld. Authorised Representative in support of assessee s case are also on different footing and hence are not applicable to the assessee s case. 4. There is a substantial difference between the circular/instruction dated 23.05.1996 and the subsequent circular/instructions dated 26.06.2006 with reference to the facts in question. In the earlier circular dated 23.05.1996, clause (b) stipulated as under:- In exercise of the powers conferred under clause(a) of sub-section (2) of section 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes hereb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26.06.1996 in respect of cash which is seized and which was not allowed to be utilized for payment of advance tax installment or installments if they fell due after the seizure of cash. 6. The learned counsel for petitioner is right in his contention that normally instructions/circulars applicable or in force on the first date of the assessment year should be applied, unless there are good reasons or the intendment to the contrary is so stipulated or can be clearly implied. Circular/instructions issued under Section 119 of the Act are primarily to serve guidelines and are binding on the subordinate authorities visited with administration of the Act. Sometimes a circular confers rights and benefits on the assessee with reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FDRs for payment of the advance tax installment. The first letter dated 16.12.1998 was written to the CIT(Central) with copy to Director General of Income Tax (Investigation). The second letter was written to the Deputy Commissioner of Income Tax (Central), the then Assessing Officer. The two letters have not been considered and examined by the CIT(Central) while rejecting the said application. We may note that the FDRs were subsequently released and were not considered as undisclosed income. 9. We may also note that the department had released FDRs worth Rs.6 crores on or about 17.02.1999 and the said amount was utilized towards payment of advance tax on 17.02.1999. Similarly, some further FDRs were released on or about 15.03.1999 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not released and adjusted. In the letter dated 24.6.1999, it was stated that they have been informed that two FDRs of Rs. 1 crore each, which were subject matter of the restraint order, would be adjusted and utilized towards payment of advance tax. A request was made that this should be done at the earliest. The Assessing Officer, Deputy Commissioner of Income Tax (Central) then wrote to the assessee that the discharged FDRs should be furnished to him so that they can be sent to the respective banks for encashment. The contention of the assessee, however, is that one FDR was released, but the second FDR of Rs.1 crore, which was directed to be released, was not released and this factum is mentioned in the letter dated 9.9.1999. With regard t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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