9911796707
TMI Blog2003 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax, Delhi (Central)-I, New Delhi (hereinafter referred to as "the Commissioner") affirming the order passed by the Income-tax Officer on May 6, 1985, declining to waive/reduce interest charged from the petitioner (hereinafter referred to as "the assessee"), under section 215 of the Income-tax Act, 1961 (for short "the Act"), because of shortfall in the payment of advance tax. Shorn of unnecessary details, the background facts, relevant for the present purpose are as follows: The petitioner, a public limited multi-unit company, is engaged in the business of manufacture of yarn, cement, etc. For the assessment year 1975-76, for which the relevant previous year ended on December 31, 1974, the assessee filed its return of income on O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee preferred a revision petition before the Commissioner but without any success. Hence, the present petition. No reply-affidavit, in opposition, has been filed on behalf of the respondents. The writ petition has been pending for over a decade. We have accordingly heard Mr. P.N. Monga, learned counsel for the petitioner, and Mr. R.C. Pandey, learned senior standing counsel for the Revenue. It is strenuously urged by Mr. Monga that none of the authorities below has found the delay in completion of the assessment as attributable to the assessee and, therefore, the said authorities should have exercised their power under rule 40 and waived the interest charged under section 215 of the Act. It is asserted that there is not even an allegat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest under section 215 are: (i) that the assessment should have been completed more than one year after the submission of the return, and (ii) the delay in the assessment is not attributable to the assessee. The discretion vested in the Assessing Officer, under section 215(4) of the Act, read with rule 40 is undoubtedly quasi judicial and is coupled with a duty to consider whether the circumstances of the case warrant waiver or reduction of interest. He is under an obligation to objectively consider the circumstances and find out whether the applicant is entitled to the waiver or reduction. A mechanical consideration of the application defeats the very purpose and object of the legislation to grant relief to an assessee against the ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the return was filed on October I, 1975, delay up to this date is attributable to the assessee and the interest for the period beyond one year from the date of submission of the return qualifies for waiver, and (ii) the interest has been charged for the period April 1, 1975, to November 13, 1975, which period is less than one year from the date of submission of the return. Laying emphasis on a circular issued by the Central Board of Direct Taxes, on June 9, 1965, the Commissioner has affirmed the view taken by the Income-tax Officer that the interest beyond the period of one year from the date of filing of the return may be waived. As regards the waiver of interest for the period from October I, 1976, to September 23, 1978, though the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
