9911796707
TMI Blog1978 (2) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... tune of Rs. 77,048. But while pronouncing the order of assessment the Income-tax Officer also levied what is called penal interest under section 217 and section 139(8) of the Act quantifying the interest at Rs. 7,795 and Rs. 21,000, respectively. The actual demand was, therefore, only for Rs. 34,397. Against the levy of penal interest under sections 217 and 139(8) of the Act, the petitioner filed a petition before the first respondent, who is the Commissioner of Income-tax, Kerala II, on the basis of section 273A of the Act. That petition was dismissed by exhibit P-3 order dated July 25, 1977. It is the validity of exhibit P-3 order that is challenged in this petition. To appreciate the contentions of the petitioner it is necessary to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year." The ground upon which the first respondent passed exhibit P-3 order rejecting the petitioner's claim is that the cumulative conditions laid down in the relevant provisions of section 273A have not been complied with. As far as the present case is concerned, the noncompliance relates to the condition " or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year " occurring in section 273A(1). The petitioner has no case that a satisfactory arrangement for paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case. So even if an order is passed under section 220(3) by the Income-tax Officer in compliance with the directions contained therein, I fail to understand how that order can amount to the making of satisfactory arrangement for payment of tax or interest referred to in section 273A of the Act. It cannot, therefore, be said that the conditions laid down in section 273A have been complied with so as to justify the first respondent for interference with that portion of exhibit P-1 which relates to the levy of penal interest under sections 217 and 139(8) of the Act. In the result, this original petition is dismissed but, in the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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