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TMI Blog2015 (7) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) is wide and that the discretion thereunder must be exercised in a judicious manner. The bona-fides of the assessee in estimating his income and paying the advance tax accordingly are relevant factors and if established fall within the ambit of Section 215(4) read with Rule 40(5). The authorities, therefore, had the jurisdiction to reduce or even to waive the interest in the present case. We see no reason to interfere with the exercise of that discretion. - Decided against the revenue. - ITR No. 7 of 1997 (O&M) - - - Dated:- 30-6-2015 - S. J. Vazifdar, Acting Chief Justice And G. S. Sandhawalia,JJ. For the Appellant : Ms. Savita Saxena, Advocate For the Respondent : Mr. Alok Mittal, Advocate JUDGMENT S. J. Va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect income. The DCIT(A) directed the Assessing Officer to see whether any interest under Section 215 of the Act was nevertheless chargeable even after excluding the addition made in respect of the assessee s share in the firm. The Revenue s appeal before the Tribunal was dismissed. The Revenue filed an application under Section 256(1) of the Act for reference of two questions of law. The aforesaid questions were not referred initially, but were referred in the circumstances already set out. 5. The issue as to whether the share from the partnership firm came to the assessee in his capacity as a member of the HUF or in his individual capacity stands concluded in favour of the assessee. The only question that remains is the one referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as such tax relates to income subject to advance tax and so far as it is not due to variations in the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made.] Rule 40. The Assessing Officer may reduce or waive the interest payable under section 215 or section 217 in the cases and under the circumstances mentioned below, namely: - (5) Any case in which the Deputy Commissioner considers that the circumstances are such that a reduction or waiver of the interest payable under section 215 or section 217 is justified. (emphasis supplied) 7. The DCIT(A) by an order dated 30.03.1990 held that there was no wilful attempt on the part of the assessee to file a lower estimate of income as the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aware of every detail of the income tax returns filed by the firm. In any event, the finding of the DCIT(A) and of the Tribunal can hardly be said to be perverse. 9. We therefore proceed, for the purpose of this reference, on the basis that there were no mala fides on the part of the assessee in estimating its income and paying the advance tax on the basis thereof. 10. The question, therefore, is whether in such circumstances the authorities under the Act had the power to reduce or waive interest payable under Section 215. The question must be answered in the affirmative, in favour of the assessee. Sub-section (4) of Section 215 expressly confers the power on the Assessing Officer to reduce or waive interest payable by the assessee un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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