Law: Income Tax Act, 1961

Section: 139,139(8),217,273,273(A)

Income-tax----Interest---Waiver of interest---Conditions precedent--Tax paid alongwith revised return---Demand further raised upon assessment paid within time allowed---Condition for waiver satisfied---Indian Income Tax Act, 1961 Ss.139(8), 217 & 273A---[C.G. Krishna Prasad (Major) v. CIT (1999) 237 ITR 422 (Kar.) reversed]. By reading sections 139(8)(a), 217 and 273(A)(1)(iii)(c) of the Income Tax Act, 1961, it is manifest .that a special power is conferred on the Commissioner to waive the interest if conditions laid down in clause (iii)(c) of section 273A(1) are satisfied. The two conditions required are as follows: (1) When a revised return is voluntarily filed before notice under section 139(2) or section 148 is issued, the self-assessed tax has to be paid along with the revised return. (2) The difference of tax as assessed by the authority has to be paid within the time prescribed by the assessing authority after the assessment order is passed. On appeal against an order dismissing the writ petition filed by the assessee against refusal by the Commissioner to waive the interest levied under sections 139(8) and 217 of the Income Tax Act, 1961, on the ground that the assessee had failed to comply with the basic requirement of payment of the full amount of tax on the amount disclosed in the return and was, therefore, not entitled to claim either waiver or reduction of the interest amount levied: Held, accordingly, allowing the appeal, that the assessee had paid self-assessed tax of Rs.1,02,180 alongwith the revised return filed on March 16, 1990. Later on, assessment was made and the assessing authority issued a demand notice on March 29, 1990, demanding Rs.7,010 on or before April 30, 1990. The appellant paid the same on April 13, 1990 within time. Thus, the appellant hard satisfied the two conditions laid down in section 273(A)(1)(iii)(c). Therefore, the appellant was entitled to waiver of the interest levied under sections 139 and 217 of the Act. C.G. Krishna Prasad (Major) v. CIT (1999) 237 ITR 422 (Kar.) reversed. THIS JUDGMENT DELIVERED BY: Y. BHASKAR RAO, J.---This writ appeal is filed assailing the order of the learned Single Judge (see (1999) 237…

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