Law: Income Tax Act, 1961

Section: 215

(a) Income-tax---Advance tax---Writ---Interest---Waiver of interest ---Assessee partner -in various- firms---Advance tax paid on basis of accounts given by, firm---. Subsequent finding that advance tax was not sufficient---Levy of interest under S.215---Application for waiver of interest---Application should be considered, objectively---.Waiver of 50 per cent. of interest ---CIT directed to consider whether assessee was entitled to waiver of entire interest---Indian Income Tax Act, 1961, S. 215---Constitution of India, Art.226. (b) Writ--- ---- Jurisdiction of High Court---Omission by Authority to exercise discretion properly---Writ would issue to direct Authority to rehear and determine matter afresh---Constitution of India, Art.226. If the discretion given to the authorities is not exercised properly on the facts of the case, the Court is entitled to interfere under Article 226 of the Constitution. If the conditions laid down for the exercise of discretion are satisfied, the authority has no discretion to refuse to exercise the discretion. If there is omission to exercise the discretion on account of the failure on the part of the authority to genuinely address itself to the matter before it, mandamus can be issued directing such authority to re-hear and determine the matter afresh according to law. Where an application is made for waiver of interest levied under section 215 of the Income Tax Act, 1961, the income-tax authorities have to objectively consider the circumstances and find out whether the assessee is entitled to it. There should not be a mechanical consideration of the claim put forward by the assessee and it should not be that if some benefit is given to the assessee, he will be satisfied. The petitioners were partners in six firms. The income from the firms was their main income. They filed returns and paid advance tax as per the accounts of the firm for the assessment years 1983-84, 1984-85 and 1985-86. The firms were also assessed for the above years and it was found that the income returned by the firms, was not correct. Consequently, the income returned by the petitioners as income from the firms had to be changed. It was further found that…

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