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Tuesday, Jun 16, 2009
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Business Daily from THE HINDU group of publications Tuesday, Jun 16, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Income Tax States - Tamil Nadu HC allows petition seeking waiver of interest on tax dues by minor Our Legal Correspondent Chennai, June 15 The Madras High Court has set aside an order of Chief Commissioner of Income-Tax, Coimbatore, levying interest under Sections 234A, 234B and 234C of the Income-Tax Act for assessment years 1991-92 and 1992-93. Allowing writ petitions by the assessee, a minor, challenging the order dated December 19, 2002, of the Chief Commissioner, Mr Justice K. Chandru ruled that the petitioner need not pay any interest for the two assessment years. Citing a circular dated May 23, 1996, of the Central Board of Direct Taxes authorising the Chief Commissioner to grant waiver of interest due, the Judge said where a return of income could not be filed by the assessee due to unavoidable circumstances, and such return was filed voluntarily by the assessee or his legal heirs, the Commissioner may order waiver or reduction of interest under the sections. In its order in M. Ganesan vs Vice-Chairman, Settlement Commission (IT & WT), reported in (2008) 299 ITR 456 (Mad), the Division Bench of the Court had said that given this power of waiver under the said circular of CBDT, the authority before whom a petition was made was bound to consider circumstances warranting a rejection or reduction. Devoid of reasons indicated for reduction, it was difficult to uphold order of authority. Petitioner was minorThe petitioner, V. Akhilandeswari, was a minor during the two assessment years, and a return of income was filed voluntarily declaring a taxable income of Rs 1,13,440. Interest under Sections 234A, 234B and 234C amounting to Rs 1,20,695 was levied. Aggrieved by the levy, a petition to waive interest was filed before the respondent (Chief Commissioner). However, not accepting the plea of the petitioner, the CCI rejected the request. It was stated that the petitioner’s father died only on March 28, 1991, and the petitioner had not paid any advance tax for the assessment year 1991-92, but paid Rs 52,500 as advance tax for assessment year 1992-93. The Judge held that the petitioner had paid tax voluntarily, and had also pleaded a good and sufficient reason for non-payment of tax. The death of her father, and her mother being unfamiliar with transactions, was not denied by the respondent. The Commissioner he had given some logical interpretation for overruling the claim of the petitioner. The claim was bona fide and the respondent had not exercised his discretion in terms of law. Hence, the writ petition would stand allowed, and the impugned order levying interest was set aside. It was declared that the petitioner need not pay any interest for the two assessment years. More Stories on : Income Tax | Courts/Legal Issues | Tamil Nadu
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