9911796707
TMI Blog2015 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner is a company incorporated under the Companies Act. It is an assessee under the Act on the file of the first respondent. The petitioner had availed a few term loans from the Kerala State Industrial Development Corporation and the State Co-operative Bank for setting up its industrial unit. According to them, on account of the increase in the cost of production, it had incurred recurring losses and ultimately its unit became a sick industry. It is stated that consequently, the financial institutions referred to above have waived the interest charged in its term loan accounts and on receipt of confirmation from the financial institutions, the excess debit of interest amounting to Rs. 89,49,503/- was written back in the profit and lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the specified class of incomes and cases specified in the circulars in this connection by the Central Board of Direct Taxes. As stated above, it is aggrieved by the said decision of the second respondent, this writ petition is filed. 3. Heard Adv.P.Gopinath Menon, the learned counsel for the petitioner and Adv.Jose Joseph, the learned Standing Counsel for the respondents. 4. The learned counsel for the petitioner strenuously contended that the confirmation of waiver of interest was received from the financial institutions concerned only after the time stipulated for payment of advance tax and therefore, the second respondent ought to have allowed the waiver of interest claimed by the petitioner. He has also contended, relying on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of proper and efficient management of the work of assessment and collection of revenue, issue, from time to time (whether by way of relaxation of any of the provisions of sections [115P, 115S], [115WD, 115WE, 115WF, 115WG, 115WH, 115WJ, 115 WK,] [139], 143, 144, 147, 148, 154, 155, [158BFA] [sub-section (1A) of section 201, sections 210, 211, [234A, 234B], 234C], 271 and 273 or otherwise), general or special orders in respect of any class of incomes [or fringe benefits] or class of cases, setting forth directions or instructions (not being prejudicial to assessees) as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than "Capital gains" which was received or accrued after the date of first or subsequent instalment of advance tax, which was neither anticipated nor contemplated by the tax payer and on which advance tax was paid by the tax payer after the receipt of such income and the DGIT or CCIT is satisfied that this is a fit case for waiver of interest chargeable u/s.234C; (c) Where, as a result of any retrospective amendment of law or the decision of the Supreme Court after the end of the relevant previous year, certain receipts which were hitherto treated as exempt, become taxable. Since no advance tax would normally be paid in respect of such receipts during the relevant financial year, penal interest is levied for the default in payment of ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority under Section 119 of the Act. The decision relied on by the learned counsel for the petitioner is also not a decision rendered in the context of the authority of the income tax officers to waive interest under section 119 the Act. In the aforesaid circumstances, Ext.P5 order of the second respondent is perfectly in order. 6. Coming to the request made by the petitioner for payment of the balance amount due by way of interest in instalments, it is noticed that the petitioner had already remitted the tax levied on them. In the said circumstances, I am of the view that the petitioner can be permitted to pay the balance amount due, less the interest already paid by them in six monthly installments commencing from 1st of Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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