MOHAMMED KUNHI Vs. ADDITIONAL ITO CANNANORE

JUDGEMENT

(1.) THE writ applicant was an assessee to income-tax for the year 1954-55. He was assessed for that year by Ext. P-2 order dated 27-4-1962. By that order, no interest has been charged under S. 18a (6) of the indian Income Tax Act, 1922 (hereinafter referred to as the Act ). It is said that a notice dated 3-9-1964 was issued to the petitioner on 4-9-1964 asking him to show cause why interest under S. 18a (8) of the Act should not be charged. It is further averred that the petitioner did not object on the date of hearing which was fixed on 19-9-1964. So an order Ext. P1 dated 19-9-1964 has been passed reading as under: "i find from my records that interest is due from you u/s 217 at the rate of 4 percent in respect of the assessment for the year 1954-55 as follows: Table:#1 This should be paid as shown in the Demand Notice. " It is the above order that is challenged in this writ application.

(2.) THOUGH the order of assessment has been passed a few days after the Income Tax Act, 1961 became law and though the order Ext. P-1 refers to S. 217 of that Act I will be referring to the provisions in the Indian income Tax Act, 1922, as it is admitted that there is no material difference, in regard to the matters arising for determination in this case, between the provisions in the two Acts.

(3.) I must also refer to R. 48 which is in these terms: "48. The Income-tax Officer may reduce or waive the interest payable under s. 18a in the cases and under the circumstances mentioned below, namely: (1) Where the relevant assessment is completed more than one year after the submission of the return, the delay in assessment not being attributable to the assessee. (2) Where a person is under S. 43 deemed to be an agent of another person and is assessed upon the latter's income. (3) Where the assessee has income from an unregistered firm to which the provisions of clause (b) of sub-section (5) of S. 23 are applied. (4) Where the 'previous year' is the financial year or any year ending near about the close of the financial year and large profits are made after the 15th of March, in circumstances which could not be foreseen. (5) Any case in which the Inspecting Assistant commissioner considers that the circumstances are such that a reduction or waiver of the interest payable under S. ISA (6) is justified. "