Waiver application rejected without addressing submissions not justifiable: Bombay HC

Grasim Industries Limited Vs Chief Commissioner of Income Tax (Central) 1 (Bombay High Court)

Bombay High Court held that rejection of application for waiver of interest under section 234C without addressing the submissions highlighted by the petitioner. Accordingly, waiver application remitted back for denovo consideration.

Facts- This petition is filed under Article 226 of the Constitution of India. Briefly, the petition challenges an order dated 30^th March 2024 passed by respondent No.1. By the said order, the application filed by the petitioner dated 9^th November 2022 seeking waiver of interest charged u/s. 234C of the Income Tax Act, 1961 for the Assessment Year 2021-22 stood rejected.

Conclusion- Held that the impugned order ought to have addressed these issues as flagged by the petitioner in supporting its case for grant of waiver of interest under Section 234C of the Income Tax Act as set out in the application of the petitioner dated 9^th November 2022. Such approach of Chief Commissioner of Income Tax would show non-application of mind to the material contentions raised by the petitioner. Further, the other statutory provisions and/or the scheme of the Act, on which the petitioner intends to support the case of the petitioner, in the given facts and circumstances, also lacks consideration in the impugned order. It was apposite for the Petitioner to raise contentions relying on the decisions cited before us, which also needs to be taken into consideration by the CCIT. Thus, we deem it to be fit and proper to quash and set aside the impugned order dated 30^th March 2024 passed by respondent No.1; and remand the proceedings to the respondent No.1 for a denovo consideration of the petitioner’s waiver application to be decided on its own merits and in accordance with law in the light of our observations and strictly without being influenced by the impugned order.