Law: Income Tax Act, 1961

Section: 220,220(2A)

Income-tax----Recovery of tax---Interest for delay in payment of tax---Waiver of interest---Power to reject application for waiver is a discretionary power---Income-tax Authority must apply its mind before such rejection---Order must contain reasons---Matter remanded to CIT---Indian Income Tax Act, 1961, S.220. The Authorities exercising powers under the various provisions of the Income Tax Act, 1961, have a duty to state the reasons for the conclusions reached by them. Though it is a discretionary power, but, while exercising such a discretionary power, the authorities are duty bound. to indicate in their order that they had applied their mind in that regard: Held; that there was nothing in the order of the Central Board of Direct ,Taxes to show that it took into consideration the several grounds raised by the-writ petitioner entitling her to waiver of interest under section 220(2A) of the Act. Though under the Voluntary Disclosure Scheme, there can be no waiver of interest that was not the reason given by the CBDT in rejecting the application of the writ petitioner for waiver of interest. The order rejecting the application for waiver of interest was not valid. Matter remanded to Commissioner of Income-tax for consideration of claim for waiver of interest. Smt. Harbans Kaur v. CWT (1997) 224 ITR 418 (SC) and Apex Finance and Leasing Ltd. v. CIT (1994) 207 ITR 781 (SC) ref. JUDGMENT The writ petition is for the issue of a writ of certiorarified mandamus to call for the records of the first respondent in F. No. 404/279 of 1985-ITCC, dated March 25, 1987, quash the said order and further direct the first respondent to grant the benefit of section 220(2A) of the Income Tax Act,1961. The allegations as sit out in the affidavit in support of the writ petition are as follows: The petitioner is an assessee on the file of the Income-tax Officer 1(3), Cuddalore. South Arcot District, in G. I. No.3601-S. On September 3, 1972, there was a search by the Intelligence Department in the business premises of the petitioner's husband and gold jewels weighing about 21 kilos and silver articles weighing about 2.5 kilos were seized. Assessment proceedings were initiated by the…

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