BHARATBHAI B SHAH Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) In this petition, the petitioner has challenged the action of the revenue authorities in demanding interest under section 234A and 234C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act').

(2.) The petition arises in following factual background.

(3.) We may record that in the petition, the petitioner had also questioned the liability to pay interest of Rs.82,303/- under section 234C of the Act. However, while pursuing this petition, the petitioner had also parallely appealed to the Commissioner seeking waiver of interest. The Commissioner, during the pendency of this petition, passed an order on 25.7.2003, a copy of which is produced along the the affidavit of the respondent dated 31st July 2003, in which the Commissioner gave substantial relief to the petitioner on the interest demanded under section 234C of the Act. The Commissioner ordered waiver of interest amount of Rs.60,059/- from a total of Rs.82,303/-. The net interest demanded under section 234C, that now survives is Rs.22,244/-. Counsel for the petitioner stated that looking to this small amount, he would not press the relief claimed in the petition qua such interest under section 234C of the Act. Under the circumstances, we have focussed our attention only to a single controversy between the parties, viz. liability of the petitioner to pay interest under section 234A of the Act.