PRECOT MILLS LTD Vs. PRECOT MILLS LTD

JUDGEMENT

(1.) This writ appeal raises a common question as to whether in exercise of the power under Section 119(2)(a) of the Income Tax Act, the Central Board of Direct Taxes would be entitled to entertain application from an individual assessee against the order of the assessing officer declining the waiver of interest chargeable under Section 234-C of the Income Tax Act and if so, whether the Board should give reasons while considering and passing orders on such application?

(2.) The facts giving rise to the above two issues are as follows. The appellant is a public limited company and they filed the return of income on 31.12.90 for the assessment year 1990-91. As the company did not have any taxable income for the said year under the normal provisions of the Income Tax Act, by virtue of Section 115-J of the Act, the book profit was disclosed in the return of income. The assessee has also paid advance tax for the financial year 1990-91 in the following manner, namely, a sum of Rs.16,00,000/- on 14.9.89, a sum of Rs.60,00,000/- on 14.12.89 and a sum of Rs.23,00,000/- on 30.3.90. At a later point of time, the assessee claimed the waiver of interest. We are not elaborating in detail the above subsequent events, as our consideration is very limited in this petition.

(3.) The assessee filed an application on 12.12.91 before the Central Board of Direct Taxes (for short, "the Board") seeking for waiver of interest. That application was rejected by the following communication: