2012 (9) TMI 334

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..... 4B of the Income Tax Act, 1961, [for short, 'the Act'], is mandatory or not. At one point of time there was a doubt on the nature of interest payable by the assessee under Section 234A/234B of the Act. That controversy stood finally settled by a Five-Judge Bench decision of this Court in the case of Commissioner of Income-Tax v. Anjum M.H. Ghaswala and Others, [2001] 252 ITR 1. This judgment is bi .....

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..... oner of Income-Tax and Others v. Ranchi Club Ltd. [2001] 247 ITR 209. However, that dismissal is by a Three-Judge Bench, whereas the judgment of Anjum Ghaswala's case (supra) is of a Five-Judge Bench of this Court. Be that as it may, the position that emerges after the judgment of this Court in Anjum Ghaswala's case (supra) is that if interest is leviable in a given case under Section 234B/234C, t .....

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..... tion No. F. No.400/234/95-IT(B), dated May 23, 1996. As per this circular, it has empowered that the Chief Commissioner of Income-tax and Director-General of Income-tax may waive or reduce interest charged under sections 234A, 234B and 234C of the Act in the class of cases or class of incomes specified in paragraph 2 of the said order for the period and on conditions which are enumerated therein. .....

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..... ion to exercise the power of an income-tax authority under the Act. We must clarify here that while exercising the power derived under the circulars of the Board, the Commission does not act as a subordinate to the Board but will be enforcing the relaxed provisions of the circulars for the benefit of the assessee in the process of settlement. 4. For the reasons stated above, we hold that the Comm .....

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..... ed to waiver of interest under the Circular bearing No. 400/234/95-IT(B) dated 23rd May, 1996, which has been referred to by this Court in the case of Anjum Ghaswala (supra). 7. To this limited extent, the civil appeal stands allowed and the matter is remitted to the Tribunal to decide the question of applicability of the said circular to the facts of this case. 8. No order as to costs.
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