SHANKARLAL JAIN Vs. CHIEF COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) The petitioner though has challenged the orders dated 26.9.2016 and 10.11.2016 passed by the respondent for the assessment years 2009-10 and 2010-11 inter alia seeking a direction to the respondent to waive of the interest charged under sections 234A, 234B and 234C of the Income Tax Act, 1961 (Act for short), has now restricted the challenge only to the orders relating to the assessment year 2010-11.

(2.) The petitioner is an individual engaged in pawn broking business at Mysore. On 16.2.2010, the Income Tax Department conducted a survey under Section 133A of the Act and in the statements recorded, the petitioner had admitted certain amounts as unaccounted. Assessments were concluded under Section 143(3) of the Act on 22.3.2013 relating to the assessment year 2010-11 levying interest under Section 234A, 234B and 234C of the Act. The petitioner had filed an application under the Boards Circular in F.No.400/29/2002-IT(B) for waiver of the interest before the Chief Commissioner of Income Tax, Bengaluru, on 19.6.2013. The respondent-CCIT declined to waive of the interest. Further, the petitioners application dated 4.3.2016 for review and re-consideration of the order dated 19.6.2013 was also rejected. Hence, the present writ petition.

(3.) Learned counsel Smt.Jinita Chatterjee appearing for the petitioner would vehemently contend that the respondent Authority has failed to appreciate the tenor of the Circular instructions of the Central Board of Direct Taxes (CBDT), dated 26.06.2006 inasmuch as the survey conducted under Section 133A of the Act in the business premises of the assessee pertaining to the assessment year in question vis--vis filing of the return by the assessee on 05.04.2011. Learned counsel submitted that the books and documents were impounded during survey and the same was not available to the petitioner despite several requests made which caused delay in filing the return of income. The same has to be construed as unavoidable circumstances. The return of income was filed on 5.4.2011 voluntarily by the assessee without any detection by the Assessing Officer. As such, the benefit of the Circular instructions dated 26.6.2006 has to be extended to the petitioner.