Law: Income Tax Act, 1961

Section: 139,139(8),215

Income-tax-Return---Advance tax---Interest---Delay in filing return---Deficiency in paying advance tax---Waiver or reduction of interest---Sections 139(8) & 215 deal with different situations---Reduction of interest under S.215---No reduction or waiver of interest under S.139(8)---Order was valid---Indian Income Tax Act, 1961, Ss. 139 & 215---Constitution of India, Art. 226. Interest is payable under section 139(8) of the Income Tax Act, 1961, for delay in filing the return and interest under section 215 is payable for deficiency in payment of advance lax. The two sections deal with entirely different fact situations. The levy of interest in respect of two different lapses is permissible under law. Held, that, in the instant case, the discretion vested in the Deputy Commissioner of Income-tax had been exercised by him. Interest was payable from April 1, 1988, till October 25, 1992. But the interest under section 215 was claimed only up to January 31, 1990. Interest under section 139(8) had not been reduced or waived. However, substantial benefit had been given to the petitioner. The order was valid. THIS JUDGMENT DELIVERED BY: P.V. NARAYANAN NAMBIAR, J.---The petitioner is an assessee of income-tax under the jurisdiction of the third respondent, Deputy Commissioner of Income-tax (Assessment), Calicut. The petitioner approached the second respondent, Settlement Commissioner of Income- tax, Madras, for settlement of their income tax cases for the assessment years 1985-86 to 1988-89. On hearing him and considering the entire facts and circumstances of the case, the second respondent passed Exh. P-2 order. As per Exh: P-2 order, consequential orders are directed to be passed by the third respondent regarding interest. In paragraph 11 of the Exh. P-2; it is seen that interest under sections 139(8) of the Income Tax Act, 1961 (hereinafter referred as 'the Act"), wherever leviable will be levied according to law and interest raider section 215/217 of the Act will be levied from the due date for a period of six months from the date of tiling the returns of income. Consequent to Exh.- P-2, the third respondent passed Exh. P-3 order…

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