9911796707
TMI Blog2003 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... 1992, till the date on which the copies of the books of account had been given to the petitioners, shall be waived by the respondent. - - - - - Dated:- 21-11-2003 - Judge(s) : A. R. DAVE., K. A. PUJ. JUDGMENT The judgment of the court was delivered by A.R. DAVE J. -As the issues involved in each of the petitions are the same, all the petitions are heard and decided together by this common judgment. Rule. Service of rule is waived by learned standing counsel Shri B.B. Naik in Special Civil Applications Nos. 11870 of 2003 and 13303 of 2003 and by learned standing counsel Shri B. T. Rao in Special Civil Applications Nos. 14063 of 2003 and 14065 of 2003. At the request of the learned advocates, the petitions are finally heard today ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of account were not required to be audited, the return was filed on October 31,1992. As the returns had been filed late, when the assessment orders were made, the Assessing Officer had levied penal interest under the provisions of section 234A of the Act. On May 21,1996, the Central Board of Direct Taxes had issued instructions to all the Chief Commissioners of Income-tax and Directors-General (Investigation) under Circular No. 400/234/95-IT(B), dated May 23,1996, to reduce or waive penal interest charged under the provisions of sections 234A, 234B and 234C of the Act in certain cases. By virtue of the said circular, the Chief Commissioners and Directors-General (Investigation) have been empowered to reduce or waive penal intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to him, though the petitioners had not filed their returns on or before October 31,1991, the date by which the returns ought to have been filed, the petitioners were definitely prevented from filing the returns as their books of account had been seized on May 19,1992, as a result of the search and seizure operations, which had taken place on that day. According to him, even if the petitioners wanted to file the returns, they could not have filed the same in the absence of the books of account. In pursuance of the applications submitted by the petitioners for return of the books of account, copies of the books of account were given to the petitioners in October 1992. It is his case that as the books of account or copies thereof were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside and the interest, which has been already paid by the petitioners in pursuance of the assessment orders, must be refunded to the petitioners. On the other hand, learned standing counsel, Shri B.B. Naik, appearing for the respondent, has tried to justify the impugned orders passed by the respondent. It has been submitted by him that the petitioners were absolutely careless in the matter of filing returns. According to him, it is an admitted fact that the books of account had not been seized before the last date for filing the returns. In the circumstances, it has been submitted by him that the amount of interest payable under section 234A of the Act cannot be waived. It has been submitted by him that the search and seizure operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir returns before the last date for filing the returns. But even thereafter, they could not file the returns from May 19, 1992, till October, 1992, as they were not having the books of account, which had been seized by the income-tax authorities. The policy laid down in the circular clearly shows that when, in the course of search and seizure operations, the books of account have been taken away by the Department and the books of account or copies thereof are not made available to the taxpayer to prepare his return of income, the Chief Commissioners and Directors-General (Investigation) are empowered to reduce or waive the penal interest. In the instant case, it cannot be disputed that the books of account were not available to the taxpaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no justifiable reason for not filing the returns immediately. In our opinion, the period during which the books of account had been actually seized by the income-tax authorities should be the period for which the petitioners should be given relief in the matter of payment of interest under section 234A of the Act, as the petitioners could not have filed their returns even if they wanted to file the same. In the instant case, however, the petitioners were supplied copies of their books of account and not the books of account. Looking to the facts and circumstances of the case, it is directed that the payment of interest in respect of the period commencing from May 19,1992, till the date on which the copies of the books of account had be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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