Law: Income Tax Act, 1961

Section: 220,220(2),(2A),264

Income-tax---Revision---Discretion of Commissioner---Commissioner cannot pass an order "prejudicial to assessee"---Interference with order passed by Commissioner not automatic---Reduction or waiver of interest ---I.T.O. refunding excess tax paid by assessee arising from Tribunals order---High Court setting aside Tribunals order---Notice of demand issued for tax and interest---Revision petition filed by assessee dismissed by Commissioner---Commissioner holding that tax demanded not paid in time---Assessee diverting funds for construction of theatre building without paying tax when it was due ---Establishes that assessee has not co-operated in proceedings for recovery of tax---Commissioner finding that no genuine hardship to assessee as he derived income from transport business regularly ---Assessee unable to establish that default in payment of tax due to circumscribes beyond control of assessee---Commissioner holding that due to non--compliance with provisions interest cannot be waived---Discretion of Commissioner properly exercised---Indian Income Tax Act, 1961, Ss.220(2), (2A) & 264. The power of the High Court to interfere with an order passed by the Commissioner under section 264 of the Income Tax Act, 1961, is not automatic; it has its own limitations. For the assessment year 1987-81, the Income-tax Officer passed an order of assessment fixing the total income of the petitioner at Rs.1,31,810 and the total tax payable at Rs.70,483. Against the order of the Income-tax Officer, the petitioner, filed an appeal before the Appellate Assistant Commissioner who rejected the appeal. On further appeal, the Tribunal allowed the application of the petitioner for rectification under section 154 of the Income Tax Act, 1961, as a result of which the depreciation in respect of buses was fixed at the rate of 40 percent. Subsequently, the Income-tax Officer passed an order giving effect to the order of the Tribunal, thereby allowing refund of the iota] amount of Rs.11,554 being the excess tax paid. Against the order of the Tribunal, the Commissioner came on a reference to the High. Court and the High Court set aside the order of the Tribunal and answered the reference…

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