Sant Lal and Ors. Vs Income Tax Settlement Commission and others (Punjab and Haryana High Court)
Punjab and Haryana High Court held that interest can be waived in case the circumstances are beyond the control of the assessee in filing return in time. Accordingly, interest u/s. 234-A of the Income Tax Act waived.
Facts- Present writ petition has been preferred by the petitioners, assailing the order passed by the Income Tax Settlement Commission, to the extent that the Commission has ordered to charge the interest @ 50% u/s. 234-A of the Income Tax Act, 1961, and also directed for the interest u/s. 234-B of the Act for the assessment year 1989-90, and similarly, it has also imposed interest u/s. 234-C, with respect to the five applicants before it.
Petitioners submits that the Settlement Commission has fallen in error, in imposing the interest upto 50% u/s. 234-A of the Act, and similarly, has erred in imposing the interest u/s. 234-B and 234-C of the Act, as it has agreed with the contentions raised by the applicants/petitioners that for the assessment years 1986-87, 1987-88, 1988-89, when the re-assessment orders were issued u/s. 148, no interest was chargeable under Section 139(8), and the interest under Section 234-A could have been charged on the ground that the returns had been filed on 12.02.1991 after delay, for the Assessment Year 1989-90.
