TEXMASTER PRODUCTIONS Vs. CHIEF CIT

JUDGEMENT

(1.) EXTS . P5 and P6 orders are challenged by the assessee. Ext. P5 is an order passed by the 1st respondent rejecting the application made by the petitioner for waiver of interest, levied under section 234A, B and C of the Income Tax Act. Ext. P6 is yet another one issued by the 1st respondent rejecting an application made by the petitioner for waiver of interest under section 220(2) of the Income Tax Act. Ext. P5 order is dealt with the claim of the petitioner for waiver of interest levied under section 234A, B and C of the Income Tax Act. Admittedly, there is no provision in the Act, providing for waiver of such interest. However, waiver is permissible only in terms of the notification dated 23.05.1996 issued by the Board. This notification provides the circumstances in which such waiver is permissible and the circumstance that is relied on by the assessee for waiver is that contained in Clause(e) which says that where the return of income could not be filed by the assessee due to unavoidable circumstances and it was later filed voluntarily without detection by the Assessing Officer. In this order, it is found by the 1st respondent that even though the petitioner claimed that the delay in filing the return and non -payment were due to unavoidable circumstances, no mention is made of such circumstances justifying the request for waiver.

(2.) THE circumstances justifying the delay in payment of tax, are factual matters which are to be pleaded and established by the assessee. Ext. P4 is the application made by the assessee for waiver of interest. In Ext. P4 also apart from repeatedly stating that default has occurred for reasons due to unavoidable circumstances, no details thereof have been furnished and this factual issue was not established before the 1st respondent. In such circumstances, denial of the request for waiver of interest cannot be said to be against the provisions of the notification mentioned above. If that be so, Ext. P5 order of the 1st respondent deserves to be upheld and I do so.