Law:

Section:

Section 119 of the Income-tax Act, 1961 - Central Board of Direct Taxes - Instructions to subordinate authorities - Assessment year 1990-91 - Whether CBDT, while disposing of an application under section 119(2)(a), acts as quasi-judicial authority and, therefore, it should certainly give reasons for its decision even though provision does not explicitly refer to provision of such reasoning in order - Held, yes - Whether power of CBDT conferred under section 119(2)(a) to issue guidelines, principles and procedures to be followed in matters of initiation of proceedings for imposition of penalties will necessarily include waiver of interest as well - Held, yes - Whether when a grievance is made before CBDT by way of an application and when that application is entertained, certainly, CBDT should consider whether request was against imposition of penalty or for waiver of interest and pass orders giving its reasons - Held, yes FACTS The assessee-company filed an application before the CBDT seeking waiver of interest levied upon it under section 234C. The application was rejected. The assessee questioned that order primarily on the ground that same did not contain any reason for rejection. The Single Judge rejected the writ petition holding that the CBDT need not give any reasons while dealing with an application made by the assessee under section 119(2)(a). On appeal : HELD While exercising the power under section 119(2)(a ), the CBDT, by issuance of guidelines, is also entitled to consider the principles or procedures to be followed by the other income-tax authorities in the work relating to assessment or collection of the revenue or the initiation of proceedings for the imposition of penalties, etc. That power of the CBDT conferred under the said provision includes the power to issue guidelines, principles and procedures to be followed in matters of initiation of proceedings for imposition of penalties and will necessarily include the waiver of interest as well. When a grievance is made before the CBDT by way of an application and when once that application is entertained, certainly, the CBDT should consider whether the request was against imposition of penalty or…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492