COMMISSIONER OF INCOME TAX Vs. RAMAKRISHNAN K

JUDGEMENT

(1.) The question referred for the opinion of this court, under S.256(1) of the Income Tax Act, 1961 (the Act), at the instance of the Revenue, reads as follows:-

(2.) The question for consideration is whether an independent order levying interest under S.215 is competent and can be passed by the assessing authority.

(3.) Interest is payable by the assessee in the contingencies mentioned in S.139(8), 215,216 and 217. The interest payable under S.215 and 217 is liable to be waived or reduced in the circumstances mentioned in R.40 of the Income Tax R.1962, by virtue of the provisions contained in sub-s.(4) of S.215 and sub-s.(2) of S.217. Similarly the interest payable under S.139(8) may be reduced or waived in the circumstances specified in R.117 A. So far as S.216 is concerned, the section itself vests a discretion in the Income Tax Officer to levy or not to levy the interest. It is clear from S.139(8), 215 and 217 that the assessee is liable for the interest chargeable thereunder if he is guilty of the defaults mentioned, but a discretion is vested in the Income Tax Officer to reduce or waive the same in the cases and circumstances prescribed.