1 7 %
EN THE HIGH coma? OF KARNATAKA AT BANGAn§RE€Q.f:-"
DATED THIS THE a, DAY 0? gnaw 2062.3.»-
PRESENT
THE HON'BLE MR.JUsT:caaK.L;MAwJUNA$§1, ' 'In
AND
THE HON'BLE MRS jasrzcfi a;V,NfigARATHfiA"
WEI? APPEAL we§222§C8($§£f§ g
BETWEEN
M.V.AMAR sHE§TYf* " .4'q; ~.:
SON or VEERABHADRA3QA. '_""
AMAR SHEETY * _, V2 _
AGED ABOBT 55 YEARS': '_
CIVIL HOSPIQAL RoAD= '- *
DHARWAD '» * ' ...APPELLANT
a'{§Y"SRI'A SHANKAR, ADV.,)
1.rHE CHIEF COMHISSIONER or
INCOME $AxL '
_ GENERAL REVENUE BUILDING
V_NAVRNAGRR, HUBL:
3
Cemmissioner of Income Tax, (Respondent lfie;1).jz
rejecting his request under Sec:22Gl2$} ref’ the hex7A
Income Tax Act, which enables an assessee_te’seek.*
reduction or” waiver of ,the VinterestL eayahie ion
the delayed payment or “tax.idehaneefiDkpursuant a
Notice issued under See;1§$®of_thelRet; and for
defaulting in pasmeht Qt tat b§y¢ng*tng permitted
peried, has filefi the Writ fietitiear
3. ln °resneetalefl¥assessment years 92-93,
94-95 and 95498 the assessee had not filed his
return in time ahd the Income Tax Authorities had
issuedwnotiee under Sec.l48 of the Act, calling
upon the assesses to file returns for those years
lfi Qho suhseqeently filed the returns for the said
«tj?ears,e Thereafter the Assessing Qfficer had
l assessed’ the assessee’s income and being
Viaggrieved by the assessment order, the assesses
l”had filed an appeal to the Commissioner of Income
° Tax (Appeals) and another appeal to the Tribunal.
5
Annexure~H1, H2 and H3, has been refiectediie 3: “h
arbitrary manner. Further, ‘the _ grevieus *d
applications dt.27.8.2002 and 3;§,2oo2»f¢;Jeai%éf’3
ef interest were initiaily net eoneidered by the
respondent and that, oh’ fiiitd’ firitd&Petition
No.§O246 / 2007, efid_see%ine e direetidh to the
respondent toflhk eoesider*U –thed’ureeplications
dt.27.8.2003″eedid:g:%CQ2®hWhi%§L®es granted by
order dt.1df7,§dD? h§»:e{g Court, directing the
respondent ‘to diseose :55 dthe representations
within four m§$tg3*fro§ the date of receipt of
tfi%dC3¥Ei%i§d 50?? 5f the iiii order, the request of
the _abpellent” wash considered, but erroneously
?sWQejected:w _;{7 is further submitted that, the
_ifiQding that: the petitioner had not satisfied
‘dconditioéa (C) for waiver of interest charged
i’Tuqaér’sec.22o(2A; of the Income Tax Act, 1961, by
.uV”~_geteHoo-operating with the Department bye filing
d» returns or in the assessment proceedings /
payment of tax demand is not correct. It is also
8
be paid within such period being a gmriodi
less than the period of (thirtyT”~daya.’
aforesaid, as may be specified by him in the “e
notice of demand. ;
{2} If the amount Specified’ in any
notice of demand under ,seotion*_156 is vnot
paid within, the period flimitedn”under sub–
section {1), the asaassee Shall be liable to
pay simple interest at [{one) per cent for
every month or part ofva month comfiriaed in
the period” fieommenciag ” from _1the day
immediatelydfoiiowing the end of the period
mentioned in eu޴aeotion=ji}*and ending with
the day on which the*amouat is paid ]
Provided that, where aa_a result of an order
under VaeotionWf15é,’;or_ section 155, or
section 350, or_eection”2S4, or section 260,
or section 252,.or_Seotion 264 [or an order
of the Settlement- Commission under aub~
section (4) of section 245D}, the amount on
..,whiCh’5finterest was payable under this
Section had been reduced, the intereet shall
“(be ,”redaoedx,”aocordingly and the excess
interest gaid, if any, shall be refundad:}
Provided ~tUrther that in respect of any
, fVperiod commencing cnu or before the SH?’ day
“”,’of March, 1989 and ending after that date,
jsuch interest shall, in respect of so much
— dofgauch period as falls after that date, be
ojcaicnlated at the rate of one and one~half
per cent, for everyn month or part of a
ai”m¢nth.3
(2A} Notwithstanding anything contained in
submaeotion (2) [the [Chief Commissioner or
Commissioner] may] reduce or waive the
é
9
amount of interest {paid of} fiaya$leVby”anddw
assessee under the said subrséetion if {ha\i7i
is satisfied] that —
(i) payment of such amdufit {has Caused etl
would cause genuine Hhatdship etc the
assesses; ” A””=V* *_ “v v
(ii) default in the payment of the amount on
which interest__ Hihhas V ._bee:’;3p’a~j’.jc: or] was
payable_anderfthéfisaidfsubwséction was
due ts cixcumstahces beydnfi the control
of tfie assesses; snd;”ua
(iii}V ____ “_ thé tsssssseé «has ?co–operated in
:any inquiry relating to the assessment
er any fm©Ceedifig’for the recovery of
any amount due from him.]
(3) Withcutvvprejudite to the provisians
contained ‘in”‘ sub–section (2}, on an
application mads.by …. the assessee before the
iiegpjry”of2 the due date under sub–section
1′{ ll tfie”{As$essing} officer may extend the
utime’,f9r *payment or allow payment by
installments, subject to such conditions as
he,’ may dtthink fit to impose in the
circumstasces sf the Case.
,¥{é)i it’ the amaunt is net paid within the
_timé; limited under subwsaction (1) or
“sxtended under sub~section (3), as the case
may be, at the place and to the person
“~-mentioned in the said notice the assesses
shall be deemed to be in default”
(5) If, in a case where payment by
installments is allowed under sub~section
(3), the assesses commits defaults in
]g_¢_1ge
15
13. We, therefore, set eéide the erfiettef
the learned single Judge, gefieeh ‘§§§e:=’e§tea;
21.8.2007 at Annexure Vtflirzto ‘the Vwtitx£§etition V
and direct the respopdent £5 eensidet the request
made by the assessee’et’Eg$exetejQI,VH2 and H3 of
the writ pet§ti?n Eek ea;v§;;§£,§e§ interest in
terms cf the ofieervetiegs made above.
i2.Ht*fit éepeel is aiiowed, but without any
order as to CQSf$; ”
Sd/-.3.