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TMI Blog2024 (4) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... granting waiver to the petitioner. Therefore, the interest u/s 234A deserves to be waived and therefore, this Writ Petition deserves to be allowed to that extent. Interest u/s 234B and 234C - They pertain to belated payment of advance tax under Section 210 within the stipulated period under Section 211 of the Income Tax Act, 1961. No case is made out by the petitioner for waiver of interest notwithstanding the reason stated by the petitioner in the affidavit. CBCT Circular No.400/129/2002-IT(B), dated 26.06.2006, does not specifically deal with waiver of interest u/s 234B and 234C of the Income Tax Act, 1961. There were no impediments operating against the petitioner from paying the advance tax within the time line under Section 211 of Income Tax Act, 1961. The decision of this Court in Tvl.Sanmac Motor Finance Ltd. case [ 2020 (2) TMI 1182 - MADRAS HIGH COURT] which was relied by the learned counsel for the petitioner as also by the learned Senior Standing Counsel for the respondents, has not given a complete waiver of interest under any of the provisions although partial waiver was allowed. That apart, the payment of interest on the tax that was payable on the date specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Section 234A of the Income Tax Act, 1961 for the Assessment Years 2005-2006 and 2007-2008 should apply for the Assessment Years 2008-2009 and 2009-2010. Therefore, the rejection of the prayer for waiver of interest under Section 234A of the Income Tax Act, 1961 for the Assessment Years 2008-2009 and 2009-2010 is liable to be interfered with favourably in the light of the CBCT Circular, dated 26.06.2006, bearing reference No.400/129/2002-IT(B). 6 . As far as interest under Sections 234B and 234C are concerned, the learned counsel for the petitioner would submit that on 17.03.1995, due to the financial stress faced by the Stores, more than 60 employees were deputed / transferred to other Co-operative Institutions. That apart, it is submitted that the employees' dues of about 1.40 Crores payable to the retired / deputed / transferred employees were still pending as on 31.03.2019. It is further submitted that a loan of Rs. 16 Lakhs due to the Tamil Nadu Government was still pending from the year 2001. It is further submitted that statutory funds of Rs. 70 Lakhs as prescribed by the Tamil Nadu Co-operative Societies Act, 1983, such as Co-operative Education Fund, Co-operativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in C.C.No.13729 of 2012, dated 21.08.2012 [(2012) 25 Taxmann.com 553 (SC)]. 12 . I have considered the arguments advanced by the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents. I have perused the decisions cited by the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents. I have also perused the content of CBCT Circular No. 400/129/2002-IT(B), dated 26.06.2006. 13 . The Hon'ble Supreme Court in Commissioner of Income Tax, Mumbai vs. Anjum M.H. Ghaswala and others [cited supra], has held as under:- ''33. It is then contended that if it is to be construed that the Commission has no power of waiver or reduction of interest then the entire purpose of Chapter XIX-A would be defeated since a person making an application to the Commission would not be in any way better off than pursuing his remedy otherwise provided in the Act. We are unable to accept this argument advanced on behalf of the respondents because the persons who approach the Commission under Chapter XIX-B are admittedly the persons who had not declared their true incomes to the income tax authorities as required under the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contemplated in the above notification. Therefore, no fault can be found with the impugned order of the 1st respondent as the 1st respondent is bound by the above notification though the petitioner company was ordered to be wound up by an order dated 18.06.2001 in C.P.No.323 of 1998. 21. Though the notification has not considered the above situation, I am of the view that the petitioner is entitled for a partial relief for the above reason dehors the above notification. The date of winding up dates back to the date of petition and during the aforesaid period, there was a legal disability to pay the tax by the company as the official liquidator obtained leave of the company court under the Companies Act, 1956. 22. Since the 1st respondent has no power to grant waiver of interest in the light of the specific instruction of the Central Board of Direct Taxes, the Court in the exercise of its power under Article 226 of the Constitution of India can order waiver applying the legal principles applicable in the case of winding up of a company. 34. As the petitioner was under a legal disability during the period between 18.06.2001 and 27.10.2006, during the subsistence of winding up order a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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