Remedial action u/s 33B/263, not u/s 35/154 ofIncome-tax Act, 1961regarding loss of revenue.

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..... the 26th March, 1966 wherein instructions were issued to the effect that wherever the Income-tax Officers have omitted to charge penal interest u/s 18A(6) of the Indian Income-tax Act, 1922, 215 of the Income-tax Act, 1961 or section 18A(8)/217, remedial action should be taken u/s 33B/263, not u/s 35/154. These instructions were issued in the light of the decision of the Supreme Court in the case .....

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..... he relevant rule. Therefore, the view that if interest is not charged at the time of completion of the assessment, it should be deemed to have been waived, appears to be incorrect because no absolute power is vested with the Income-tax Officer, of reducing or waiving the interest. (ii) Interest can be charged only after the tax has been quantified on completion of the regular assessment. (iii) .....

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..... cause notice to the assessee. On receipt of the reply from the assessee, the Income-tax Officer should consider whether there is any case for waiver or reduction of interest leviable u/s 139(8), 215,217(1) and 217(1A) of the Act. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Tax .....

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