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TMI Blog1998 (9) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ver of interest on the sum of Rs. 3,62,042 being the amount by which the first instalment of advance tax paid by it on September 14,1989, fell short of 20 per cent. of the tax liability for the year. The assessee sought waiver of interest on the ground that the sum of Rs. 60 lakhs paid by it on December 14, 1989, was almost 50 per cent, in excess of the amount by which it was required to pay as the second instalment and the Government having had the benefit of that larger amount, had at the same time called upon the petitioner to pay interest for the period of three months from September 14,1989 to December 13,1989, under section 234C of the Income-tax Act. The Central Board of Direct Taxes by its communication dated January 7, 1991, to the assessee did not set out any reasons for declining the request of the assessee but merely stated that it regretted its inability to intervene in the matter. The assessee is a textile mill. It had become liable for tax for the assessment year 1990-91 by virtue of section 115J of the Act as the book profits amounted to Rs. 6,37,04,956, 30 per cent, of that sum being Rs. 1,91,11,490 became taxable. The assessee paid a sum of Rs. 99 lakhs as tax i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a legislative character providing for the generality of the cases, or class of incomes. The court also observed that an individual case of hardship does not fall within the purview of section 119(2)(a) of the Act. The appeal made by an individual assessee to the Board under section 119(2) of the Act was characterised by the court as an appeal by a citizen to the law makers for prevention of hardship or inconvenience that may have been unintended; or may become necessary in a given circumstance and the Board was therefore required to examine such request fairly and objectively and provide such remedies by relaxation or otherwise. Counsel also relied on the decision of this court in W. P. Nos. 2528 and 2529 of 1997 and connected matters decided on December 13,1993, wherein it was held that the power of the Board under section 119(2) is quasi-judicial in nature and that any rejection of claim thereunder should be preceded by an effective opportunity to the assessee concerned. Section 119 of the Act bears the heading: "Instructions to subordinate authorities", and reads thus: "119. (1) The Board may, from time to time, issue such orders, instructions and directions to other i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in any of the provisions of Chapter IV or Chapter VI-A where the assessee had failed to comply with any requirement specified in such provision for claiming deduction thereunder, subject to the following conditions, namely :- (i) the default in complying with such requirement was due to circumstances beyond the control of the assessee ; and (ii) the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed : Provided that the Central Government shall cause every order issued under this clause to be laid before each House of Parliament." Section 119(1) vests power with the Board to give orders, instructions and directions to other income-tax authorities "for the proper administration of this Act." The proviso imposes a bar on the Board interfering with the exercise of the discretion by the appellate authorities under the Act and also bars the Board from issuing directions to any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner. Section 119(2) has three clauses (a), (b) and (c). Clause (a) deals with the Board's p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be done by the assesses for complying with the Act, in cases where the strict enforcement of those time limits would cause undue hardship. The power under clause (a) of section 119(2) is a wider power and this power is not meant to be exercised on the ground of undue hardship having been caused to an individual assessee, as the Act is meant to be of uniform application and is not to be altered or modified to the needs of an individual assessee. The power conferred by clause (a) is only to be exercised for the purposes specified therein and for no other purpose. The power under clause (a) of section 119(2) of the Act is a power to be exercised for the "proper and efficient management of the work of the assessment and collection of revenue". The power conferred by this clause enables the Board to relax the provisions mentioned therein, but such relaxation is not to be merely for the purpose of granting relief to individuals who claims to have suffered undue hardship. Any relaxation that may be ordered by the Board must subserve the object of proper and efficient management of the work of assessment and collection of revenue. The power is to be exercised in respect of a clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 234C of the Act. The Board has considered the representation made by the assessee and has informed the assessee that it was unable to intervene in this matter. The Board had not ignored the communication of the assessee. Having considered it, it has informed the assessee that the relief sought by the assessee cannot be granted. The Board was under no duty to grant relief to the assessee on the facts pleaded by the assessee. The payment of a larger sum in the later instalment by the assessee was not on account of any compulsion imposed by the statute but was a purely voluntary act on the part of the assessee. The payment of a sum which was less than the amount which under the relevant provisions the assessee should have paid towards the earlier instalment, renders the assessee liable for the payment of interest. The Board apparently did not consider the application of the provisions as it stands to the assessee, as resulting in a situation where it adversely affected the proper and efficient management of the work of assessment and collection of revenue warranty the making of any general or special order by treating the assessee as a class by itself. The Board in fact has issued ..... X X X X Extracts X X X X X X X X Extracts X X X X
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