R.anandakumar v. The Chief Commissioner Of Income Taxtiruchirappalli. Prayer

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE Mr. JUSTICE T.S.SIVAGNANAM W.P.No.24152 of 2004 R.Anandakumar.. Petitioner ..Vs.. The Chief Commissioner of Income TaxTiruchirappalli. Prayer: .. Respondent Writ Petition filed under Article 226 of the Constitution ofIndia, praying to issue a Writ of Certiorarified Mandamus tocall for the records of the respondent in C.No.932(49)/CCIT/TRY/2002-03 dated 30.03.2004 and quash the same in so faras it is against the petitioner and further direct therespondent to grant waiver of interest under sections 234B and234C of the Income Tax Act, 1961 for the assessment year 1989-90. For Petitioner : Mr.N.Quadir Hoseyn For Respondent : Mr.Joseph George.M for Mr.J.Narayaswamy Standing Counsel ****************O R D E R Heard Mr.N.Quadir Hoseyn, learned counsel for the petitionerand Mr.Joseph George.M, learned counsel appearing for therespondent. 2.In this Writ Petition, the petitioner challenges the orderpassed by the respondent dated 30.03.2004, in so far as itdenies the waiver of interest chargeable under sections 234B and234C of the Income Tax Act, 1961 (in short 'Act'). 3.As there was a proposal to levy interest under threeprovisions viz. Sections 234A, 234B and 234C of the Income TaxAct, 1961 for the assessment year 1989-90, the petitioner soughtfor waiver. The application submitted by the petitioner forwaiver of interest under Section 234A was favourably consideredby the respondent and the respondent found that the petitionerwas a student till 1990 and only after he finished his studies,he involved himself in the business activities of the firms, in https://hcservices.ecourts.gov.in/hcservices/ which he was a partner and came to know of the fact that due tothe delay in getting the share income particulars from thefirms, there was a delay in filing his individual return ofincome for the assessment year 1988-89 to 1991-92. Further, itis stated that as soon as he received share income particulars,he filed return of income on 28.07.1994 voluntarily. The saidexplanation given by the petitioner was found acceptable andreasonable cause for delay in filing the Return of Income andtherefore, the respondent waived the interest charged undersection 234A of the Act. However, for the interest undersections 234B and 234C of the Act, the authority did not referto the reasons given by the petitioner nor his objections forwaiver, but, stated that the circumstances mentioned in theNotification dated 23.05.1996, are not satisfied, for thepetitioner being entitled for waiver of interest under sections234B and 234C of the Act. 4.More or less identical case was considered by the Hon'bleDivision Bench of Gujarat High Court in the case of VINODCHANDRAC.PATEL v. CIT[(1994) 121 CTR(Guj) 160:(1995) 211 ITR 232(Guj)], wherein the Hon'ble Division Bench pointed out that whencircumstances resulting into late payment of taxes and when thesame set of circumstances are considered to be unavoidablecircumstances responsible for the delay in filing the return ofincome, ordinarily, such circumstances would also qualify to beconsidered to be unavoidable circumstances responsible for thedelay in the late payment of taxes. Referring to theNotification dated 23.05.1996, it was pointed out that thepowers conferred on the Chief Commissioner of Income Tax/Director General of Income Tax to waive interest charged undersections 234A, 234 B or 234C of the Act and the classes of casesof classes of income specified in para 2 of the said order. Itwas pointed out that condition precedent is that reduction orwaiver of such interest can be ordered only after the assesseehas filed the return of income for the relevant assessment yearand paid the entire tax due on the income as assessed except theamount of interest for which reduction or waiver has beenrequested for. 5.After noting the factual circumstances in the said case,it was pointed out that if the circumstances have beenconsidered to be unavoidable circumstances for the purpose ofwaiver of interest under section 234A, in the facts of the case,the same would have to be considered as unavoidablecircumstances for the purpose of reduction/waiver of interestunder sections 234B and 234C as well. Accordingly, whateverwaiver granted under section 234A, shall also be extended withregard to waiver of interest under sections 234B and 234C of theAct. 6.As noticed above, the respondent was satisfied with thefact that the petitioner has made out a case for waiver ofinterest under section 234A of the Act and the respondentrecorded that it is a reasonable cause for delay in filing thereturn of income. Applying the reasons assigned by the Hon'bleDivision Bench of the Gujarat High Court, this Court is of theview that the same reasoning should be adopted while consideringthe claim of waiver of interest under sections 234B and 234C ofthe Act. 7.In the light of the above, the Writ Petition is allowed,the impugned order is set aside and the respondent is directedto grant waiver of interest under sections 234B and 234C of theAct for the assessment year 1989-90. No costs. Sd/- Asst.Registrar (CS II ) /true copy/Sub Asst. RegistrarToThe Chief Commissioner of Income TaxTiruchirappalli.+1 cc to Mr.N.Quadir,advocate,sr.50665.ca(co)krd 23/9W.P.No.24152 of 2004