V.N. PARAMESWARAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioners were the owners of the VVP High School, Palakkad. The petitioners challenge exhibits P8 and P9 orders of the second respondent rejecting the petitions for waiver of interest under sections 234A, 234B and 234C of the Income-tax Act, 1961, and exhibit P6 order issued by the Commissioner of Income-tax refusing to condone the delay in filing of the returns for the years 1990-91 to 1992-93. It is submitted that the second petitioner, the mother of the first petitioner, expired on September 24, 1998. Prayers in this original petition are as follows:--

(2.) According to learned counsel for the petitioners, the first respondent ought to have condoned the delay in filing of the returns of income for the assessment years 1990-91 to 1992-93 on the basis of the Board's Circular No. 670 : , dated October 26, 1993, and on that basis the second respondent ought to have waived the interest under sections 234A, 234B and 234C for the assessment years 1990-91 to 1992-93. Moreover, the sum of Rs. 8,20,600 was paid to the petitioners by the Government only on March 19, 1994, and as such the petitioners could not effect the payment relating to the assessment year 1994-95 as advance tax, as the last instalment for payment of advance tax as per the provisions of the Act is 15th March and, therefore, the second respondent ought to have waived the interest for the assessment year 1994-95 also. Therefore, the petitioners are eligible for the waiver of interest under sections 234A, 234B and 234C for the assessment years 1990-91 to 1992-93 and for 1994-95 also. Therefore, the petitioners are also eligible for the interest under section 244A of the Act.

(3.) The relevant portion of Circular No. 670 : , dated October 26, 1993, is quoted below for ready reference (see COMMISSIONER OF INCOME-TAX V/S KESORAM INDUSTRIES AND COTTON MILLS LIMITED, 1993 204 ITR 154 :