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TMI Blog2013 (2) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... h him on 4.11.1988 and so the interest could be waived upto 30.11.1988, would not be correct. It was not disputed that the enhanced compensation and the interest was received between July to November 1989 and the assessee did not know before that the amount which was to be depicted in the income tax return for purposes of tax. The assessee was, thus, entitled for waiver of interest till the date of receipt of enhanced compensation All the four petitions are partly allowed and it is held that the Commissioner was not right in holding that there was no proper justification for delay after 30.11.1988 in filing return for the assessment years in question. Remand back to AO - CWP No.14724 of 1993 - - - Dated:- 19-7-2012 - MR. AJAY KUMAR M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was completed on the basis of income declared by the Assessing Officer on 30.4.1991. However, the Assessing Officer charged interest under sections 139(8) and 217 of the Act and also ordered to initiate penalty proceedings under section 271(1) (a) and 273(b) of the Act. The penalty proceedings ordered to be initiated were later on withdrawn. On appeal, the Deputy Commissioner of Income Tax (Appeals) Chandigarh Range Chandigarh deleted the interest charged under sections 139(8) and 217 of the Act in respect of assessment years 1982-83 to 1984-85. The department went in appeal against the said order before the Tribunal. The petitioner moved a petition under section 273A for waiver of interest and penalty imposable/imposed for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te for filing of the return for a particular assessment year, the interest under sections 139(8) and 217 of the Act was liable to be waived. Learned counsel further submitted that the Commissioner had erred in partly allowing the petition filed under section 273A of the Act. Once the conditions as enumerated in Section 273A of the Act were fulfilled by the assessee, interest under sections 139(8)/217 of the Act ought to have been waived completely. Reliance was also placed on judgment of the Hon'ble Supreme Court in Apex Finance and Leasing Limited v. Commissioner of Income Tax and others, (1994) 207 ITR 781, Division Bench judgment of this Court in Smt.Parkash Devi v. Commissioner of Wealth Tax, Jullundur, (1983) 141 ITR 122, and Single Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions envisaged by that section are satisfied, that he may waive or reduce the penalty or the interest imposable under the Act. However, the exercise of discretion cannot be either arbitrary or capricious and has to be judicious and objective. Section 273A does not confer absolute discretion upon the Commissioner to pass any order which he pleases to make. He is required to consider the application on the merits. 7. Adjudicating the issue in favour of the petitioner, the Division Bench of this Court observed that the petitioner therein had received compensation in February 1991 and, therefore, there was no justification in charging interest for the earlier period. 8. Adverting to the factual matrix in the present case, the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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