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TMI Blog2015 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... authorised to waive interest payable by the petitioner under Sections 234B and 234C of the Act only if the case of the petitioner falls under any of the three classes of cases referred to. Going by the averments in the writ petition, the case of the petitioner would not come under classes (a) and (c). Coming to class (b), there is nothing on record show as to when the financial institutions have intimated to the petitioner their decision to waive the interest charged on the petitioner. In the absence of any material as to the time at which the petitioner received intimation concerning the waiver of interest granted by the financial institutions, unable to consider the question as to whether the case of the petitioner would fall under clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 ₹ 89,49,503/- was written back in the profit and loss account of the petitioner for the year 2000-2001 as an extra-ordinary item. On account of the inclusion of the said extraordinary item, the net profit of the petitioner for the assessment year 2001-02 increased from ₹ 3,72,400/- to ₹ 64,22,169/- and consequently, the petitioner h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned 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 decision of the Karnataka High Court in Kwality Biscuits Ltd. v. Commissioner of Income Tax [2000 Vol.243 ITR 519] that the book profit can be determined only after the end of the relevant assessment year and therefore, the assessee has no liability to pay interest under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, 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 proceedings for the imposition of penalties and any such order may, if the Board is of opinion that it is necessary in the public interest so to do, be published and circulated in the prescribed manner for general information; It is clear from Section 119(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 advance tax As stated above, the second respondent is empowered and authorised to waive interest payable by the petitioner under Sections 234B and 234C of the Act only if the case of the petitioner falls under any of the three classes of cases referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 February, 2015. Since the matter is pending before this Court from 8.4.2008, I am of the view that the petitioner shall be absolved from the liability to pay interest for the period during which the writ petition was pending before this Court, and it is ordered acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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