Law: Income Tax Act, 1961

Section: 139

Income tax---Words "reduce" and "waive" Meaning of Words are not inter¬changeable and they convey different meanings Assessee found to have sufficient cause for furnishing returns late I. T. O. is not obliged to waive interest altogether. (1976) 104 I T R 597 and (1974) 93 I T R 563 (Guj.) ref. ORDER By his order Exh. P. I. dated 6 12 1977 the Ist respondent, the Income tax Officer, C. Ward, Trivandrum assessee the income of the petitioner for the assessment year 1975 76 and determined the tax payable at Rs. 1,11,50,375. In addition to this he charged Rs. 5,57,515 as interest under section 139 (8) of the income tax Act ("the Act") on the ground that the Income tax return which was due to be filed on or before 31 7 1975 was filed out of time on 23 1 1976. From the order of assessment the petitioner preferred an appeal before the Appellate Authority. In giving effect to the Appellate Authority's decision the first respondent by his order Exh. P. 2 dated 31 3 1978 reduced the interest to Rs. 5,09,770. Thereafter the petitioner moved a petition Exh. P. 3 dated 25 8 1973 under the Proviso to section 139 (8) (2) before respondent 1 seeking waiver of the interest on the plea that it was prevented by sufficient cause from furnishing the return within the prescribed time. Respondent I however rejected the petition by his order Exh. F. 4 dated 5-9 1978 The petitioner carried the order Exh. P. 4 in revision under section 26 before respondent 2, the Commissioner of Income tax, Ernakulam. Ext. P. 5 is a copy of the revision petition. During the pendency of the revision respondent 1 passed an order Ext. P. 6 dated 22 9 1979 levying a penalty of Rs. 6,11,724 under section 271(1) (a) holding that he was not satisfied that reasonable cause existed for the delayed submission of the return by the petitioner. The petitioner challenged the order Exh. P. 6 before the Commissioner of Income tax (Appeals). By the order Exh. P. 7 dated 14 1 1980 the Commissioner of Income tax (Appeals) cancelled the penalty in the view that the petitioner was prevented by sufficient cause from furnishing the return within the time. The petitioner brought to the notice of respondent 2 the above order of…

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