| The Tax Publishers2020 TaxPub(DT) 0686 (Mad-HC) CONSTITUTION OF INDIA, 1950
Article 226
Where the power to grant waiver from payment of interest under the Income Tax Act, 1961 stems from sub-clause (2) (a) to section 119 and CBDT has also delegated such powers in certain cases up to particular amount with the Principal/Chief CIT, since section 119 of Income Tax Act has not been incorporated in section 21 of the Interest Tax Act, 1954, petitioner could not claim the benefit of the Circular No. 400/129/2002-IT (B), dt. 26-6-2006 for waiver of interest.
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Writ petition - Waiver of interest under section 12A of Interest Tax Act - Maintainability -
In the instant writ petitions, petitioner had challenged the order passed by Revenue for the assessment years 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, 1997-98 & 1998-99. By order, applications filed by petitioner for waiver of interest under section 12-A of Interest Tax Act, 1974 was rejected on the ground that petitioner had not met with the conditions specified in Central Board of Direct Taxes Circular No. 400/129/2002-IT (B), dt. 26-6-2006. Held: The power to grant waiver from payment of interest under the Income Tax Act, 1961 stems from sub-clause (2) (a) to section 119. CBDT has also delegated such powers in certain cases up to particular amount with the Principal/Chief CIT. Since section 119 of the Income Tax Act has not been incorporated in section 21 of the Interest Tax Act, 1954, petitioner could not claim the benefit of the said circular for waiver of interest. Therefore, in absence of any power to grant waiver of interest under the provisions of the Interest Tax Act, 1974, Revenue could not grant waiver to an assessee under the provisions of the said Act.
REFERRED : R. Anandakumar v. Chief CIT [W.P.No. 24152 of 2004, dt. 7-9-2016]
FAVOUR : Petition dismissed
A.Y. :
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