S.m.shamsudeen v. The Chief Commissioner Of Income Tax Ii 121 Mahathma Gandhi Road Chennai-34

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 11.9.2008 CORAM THE HON'BLE MR.JUSTICE M.JAICHANDREN W.P.Nos.2660 and 2661 of 2001 S.M.Shamsudeen vs. .. Petitioner in both the writ petitions The Chief Commissioner of Income Tax II121 Mahathma Gandhi RoadChennai-34 W.P.No.2660 of 2001: .. Respondent in both the writ petitions This writ petition is filed under Article 226 of theConstitution of India praying for the issuance of a Writ ofCertiorarified Mandamus to call for the proceedings of the respondentin C II/B(143)/1999-2000 quash the order dated 28.9.2000 in relatingto the assessment year 1989-90 and consequently direct the respondentto waive or reduce the interest levied under Section 234 A and 234 Bof the Income Tax Act for the assessment years. W.P.No.2661 of 2001: This writ petition is filed under Article 226 of theConstitution of India praying for the issuance of a Writ ofCertiorarified Mandamus to call for the proceedings of the respondentin C II/B(143)/1999-2000 quash the order dated 28.9.2000 in relatingto the assessment year 1990-91 and consequently direct the respondentto waive or reduce the interest levied under Section 234 A and 234 Bof the Income Tax Act for the assessment years. For petitioner : Mr.C.V.Rajan For Respondent : Mr.M.Muralikumaran O R D E R Heard the learned counsel appearing for the parties concerned. https://hcservices.ecourts.gov.in/hcservices/ 2. Since the issues involved in the above writ petitions havearisen out of the same facts and circumstances, a common order ispassed. 3. The facts, in a nutshell, are as follows: It has been stated that the petitioner is an individual assessedto Income Tax on the file of the Income Tax Officer, Ward I(2),Kumbakonam, in G.I.No.1810 S. The relevant assessment years are 1989-90 and 1990-91, ending on 31.3.1989 and 31.3.1990, respectively. 4. It has been further stated that for the assessment years1989-90 and 1990-91, the petitioner had not filed the returns withinthe due dates, under Section 139(1) of the Income Tax Act. Hence, anotice, under Section 142(1) of the Income Tax Act, had been issued,on 7.1.1991, directing the petitioner to file the return, on orbefore 31.1.1991. Pursuant to the said notice, the petitioner hadissued a letter, dated 24.9.1991, to the assessing officer statingthat the petitioner could not file the returns for both theassessment years due to compelling family circumstances which werebeyond his control. It was stated that the petitioner's abnormalmental and physical condition was due to the severe heart problemsuffered by one of his brothers, who had later died and the death ofhis parents. He had also stated that the office and the recordstherein had been destroyed due to a fire accident. Further, thepetitioner's building as well as his vehicle (van) had been destroyeddue to political enmity. While so, the assessing officer hadcompleted the assessments, on 3.1.1992, under Section 144 of theIncome Tax Act and the following demands were raised. 5. While completing the assessment, the assessment officer hadlevied the penal interest, under Section 234 A and 234 B. Later, thepetitioner had filed a waiver petition before the respondentcontending that the returns for 1989-90 and 1990-91, due to be filedby 31.8.1989 and 31.8.1990, respectively, could not be filed due to https://hcservices.ecourts.gov.in/hcservices/ various reasons. It has been stated that notices, under Section 142(1) were issued for 1989-90 and 1990-91, on 7.1.1991. The assessingofficer had completed the assessment, under Section 144 of the IncomeTax Act, for the years 1989-90 and 1990-91, on 3.1.1992 i.e., after adelay of 28 months and 12 months, respectively, from the dates whenthe time, under Section 139(1) for filing the returns, had expired. 5. While completing the assessment, the assessment officer hadlevied the penal interest, under Section 234 A and 234 B. Later, thepetitioner had filed a waiver petition before the respondentcontending that the returns for 1989-90 and 1990-91, due to be filedby 31.8.1989 and 31.8.1990, respectively, could not be filed due to https://hcservices.ecourts.gov.in/hcservices/ various reasons. It has been stated that notices, under Section 142(1) were issued for 1989-90 and 1990-91, on 7.1.1991. The assessingofficer had completed the assessment, under Section 144 of the IncomeTax Act, for the years 1989-90 and 1990-91, on 3.1.1992 i.e., after adelay of 28 months and 12 months, respectively, from the dates whenthe time, under Section 139(1) for filing the returns, had expired. 6. It has also been stated that if the assessment for the years1989-90 and 1990-91 had been completed, under Section 144 (1), intime, the petitioner would not have been liable for payment of a hugeamount as interest. The inordinate delay in completing theassessments for the said years, under Section 144 of the Income TaxAct, was not attributable due to any default on the part of thepetitioner. Therefore, the petitioner had requested the respondent towaive the interest levied, under Section 234 A and 234 B of theIncome Tax. However, the respondent by his order, dated 28.9.2000, inC.II/B(143)/1999-2000, had dismissed the waiver petition on theground that the petitioner's case does not fall under any of thecriteria (a) to (d) enumerated in the Board's Circular, dated23.5.1996, and there was no merit in the petition. 7. Thus, the respondent had dismissed the waiver petition filedby the petitioner, without properly assessing the reasons for nonfiling of the returns in time. The respondent had dismissed thewaiver petition merely on the ground that no details had been given.No materials were produced to substantiate the claims made by thepetitioner. The respondent would have given an opportunity to thepetitioner to produce the necessary records to show that there wassufficient reasons for the non-filing of the returns in time. In suchcircumstances, the petitioner has filed the present writ petitions,praying for the reliefs as stated therein. 8. At the stage of the hearing of the writ petitions, thelearned counsel appearing for the petitioner had submitted that itwould suffice if this Court is pleased to set aside the proceedingsof the respondent in C. II/B(143)/1999-2000, dated 28.9.2000,relating to the assessment years 1989-90 and 1990-91 and if thepetitioner is permitted to submit all the relevant records before therespondent to show that there were sufficient reasons for the failureof the petitioner to submit the returns for the years 1989-90 and1990-91, within the time limit prescribed and if this Court directsthe respondent to consider the request of the petitioner for waiverof penal interest levied, under Section 234 A and 234 B of theIncome Tax Act. 9. The learned counsel appearing for the respondent had noserious objections for this Court passing such an order. 9. The learned counsel appearing for the respondent had noserious objections for this Court passing such an order. 10. In view of the reasons stated in the affidavit filed insupport of the petitions and considering the submissions made by thelearned counsels appearing for the parties concerned, the impugnedproceedings of the respondent, in C.II/B(143)/1999-2000, dated28.9.2000, relating to the assessment years 1989-90 and 1990-91, isset aside. However, the petitioner shall submit all the relevantrecords in support of his claims, necessary for the respondent toassess as to whether there were valid reasons to entertain therequest of the petitioner for waiver of the interest charged, underSections 234 A and 234 B for the assessment years 1989-90 and 1990-91, within a period of four weeks from the date of receipt of a copyof this order. On the petitioner submitting the necessary records, asstated above, the respondent is to assess the same, with regard tothe request of the petitioner, for waiver of interest charged underSections 234 A and 234 B of the Income Tax Act, 1961, and to passappropriate orders thereon, within a period of eight weeksthereafter. The writ petitions stand disposed of. No costs. Sd/-Asst. Registrar/true copy/Sub Asst. RegistrarlanTo: The Chief Commissioner of Income Tax II121 Mahathma Gandhi RoadChennai-34 +1 cc to Mr.M.Muralikumaran, Advocate, SR.No.52890 https://hcservices.ecourts.gov.in/hcservices/