KISHAN LAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the parties. In the instant case interest was sought to be levied on the appellant under Sec. 220(2) of the Income-tax Act on account of default having been committed by the appellant in payment of Income-tax within time. In order to avoid this levy, the appellant filed an application under sub-section (2-A) of Sec. 220 before the Central Board of Direct Taxes, inter alia, stating facts and reasons as to why the amount of interest which was payable should be reduced, if not waived altogether. Reasons for seeking a favourable order were contained in the application.

(2.) The appellant received a letter dated 29th January, 1987 whereby this application was rejected. The said letter reads as follows:-

(3.) A writ petition under Art. 226 of the Constitution was then filed in the High Court of Delhi and it was contended that while rejecting the application the Central Board of Direct Taxes had given no reasons. The High Court observed, while dismissing the writ petition, that the order of the CBDT could not be said to be vitiated for this reason.