Law: Income Tax Act, 1961

Section: 139,215,40,117,117A

Income-tax--Return---Advance Tax-Interest-Waiver of interest -Application for waiver---Assessee must be given opportunity to be heard---Rejection of application without giving such an opportunity---Matter remanded---Indian Income Tax Act, 1961, Ss.139 & 215--Indian Income-tax Rules, 1962, Rr.40 & 117A---Constitution of India, Art.226. Held, that from the impugned order it was not clear whether the respondent had given any opportunity to the petitioner/assessee to show cause as to why the interest should not be levied. In the circumstances it had to be held that the respondent had passed by the order without giving such opportunity. The order was not valid with regard to waiver of interest. [The respondent was directed to give an opportunity to the petitioner and then decide the matter in accordance with law within three months from the date of receipt of a copy of the order]. Harbans Kaur (Smt.) v. CWT (1997) 224 ITR 418 (SC); M.G. Bros. v. CIT (1985) 154 ITR 695 (AP) and Purshottam Thackersey v. K.N. Anantarama Ayyar, CIT (No.2) (1985) 154 ITR 438 (Bom.) ref. THIS JUDGMENT DELIVERED BY: The petitioners in both the writ petitions are one and the same. The facts and relief sought for are also identical. The facts, leading to filing these writ petitions are as follows: The petitioner was having a licence for arrack blending and bottling unit at Tanjore. He is an income-tax assessee also. For the assessment years 1984-85 and 1985-86, the Income-tax Officer made elaborate enquiries in view of the raid conducted in the premises of the petitioner. That, in order to complete the assessment and purchase peace with the Department, the petitioner filed a settlement petition to the Commissioner of Income-tax, Central-I-, Madras 34. After having discussions, the Commissioner of Income-tax estimated the income of the petitioner and gave direction to the Income-tax Officer to complete the assessment as follows: Rs. 1984-85 50,00,000 1985-86 60,00,000 The petitioner had filed his return of income on March 26, 1986, for the assessment year 1985-86 admitting a total income of Rs.60,04,050 in pursuance of the settlement arrived at with the Commissioner of Income-tags…

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