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TMI Blog1998 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... on 273A(1) clauses (i) and (iii) read with clause (c), the petitioner had applied for waiver of the interest vide his application dated February 5, 1990, which application is attached as annexure-3 with the writ petition. It has been stated by the petitioner that because of circumstances beyond its control and because of certain financial strains, there was certain lapse on the part of the petitioner and a request was made to deposit the additional tax in instalments. It was further stated in annexure-2 that because of facing a tremendous financial strain, it was not finding it possible to fulfil the business commitments, because of the reason that the company had suffered heavily due to negligent manipulation and fraud committed by its ex- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year. Section 273A reads as under : "273A. Power to reduce or waive penalty, etc., in. certain cases.---(1) Notwithstanding anything contained in this Act, the Chief Commissioner or Commissioner may, in his discretion, whether on his own motion or otherwise,--- (i) reduce or waive the amount of penalty imposed or imposable on a person under clause (i) of sub-section (1) of section 271 for failure, without reasonable cause, to furnish the return of total income which he was required to furnish under sub-section (1) of section 139 ; or (ii) reduce or waive the amount of penalty imposed or imposable on a person under clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year." Once a demand has been made and the assessee has been assessed for payment of tax including the interest, such total demand does fall in the definition of tax imposed. The contention of the petitioner that it had deposited the tax but could not deposit the part of interest, and therefore, it is to be deemed that it had complied with the condition of depositing the tax or interest payable cannot be accepted. However, it is an admitted fact that before making application for waiver or reducing the interest, the petitioner had not paid the interest nor had made any satisfactory arrangement for such deposit. The contention of the petitioner that because of the reason that the petitioner is a State undertaking attached to RIICO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated February 18, 1994, had observed that the waiver application already stood rejected on November 25, 1992, and, therefore, the petition for the same year had already been disposed of and as such another petition for waiver on whatever circumstance is not maintainable and ultimately vide annexure-12 dated February 25, 1994, the waiver of interest under section 220(2A) of the Income-tax Act had been rejected. These two orders are being challenged by the petitioner. While exercising powers under section 273A of the Income-tax Act, the Commissioner did observe in the order dated November 25, 1992, that because of the reason that it has not been mentioned that any satisfactory arrangement for the remaining amount to pay tax had been made, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee should be informed that his application for waiver can only be considered if the assessee complies with the provisions of law in reasonable time and an opportunity to that extent is required to be given to such an assessee. In Writ Petition No. 3450 of 1994 the Commissioner had not applied his mind and has not appreciated the situation properly. The assessee had categorically stated that he had deposited more amount than required or demanded. To dismiss the application of waiver or not to consider the application of waiver on the ground that he had already passed such an order On the merits was totally an illegal order. As a matter of fact, by the impugned order in S. B. Civil Writ Petition No. 1186 of 1993 the merits of waiver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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