COMMISSIONER OF INCOME TAX Vs. M.P. PURUSHOTHAMAN

JUDGEMENT

(1.) THIS appeal has been preferred by the CIT, Central -I, Madras and 2 others (hereinafter referred to as the 'Revenue') against the order dt. 17th July, 1998, passed by the learned single Judge in Writ. Petn. No. 8779 of 1989. By the said judgment, learned single Judge held that the respondent/writ petitioner (hereinafter referred to as the 'assessee') has made out a case for waiver of interest, as was levied under Section 217 of the IT Act (hereinafter referred to as the 'Act') and set aside the impugned decision dt. 6th Dec, 1988 in C. No. 1511/4(2 and 3)87 -88/Cent -I and also directed the Revenue to waive interest as was levied on the assessee under Section 220(2) of the Act, amounting to Rs. 1,29,061.

(2.) THE questions that arise for determination in this case are:

(3.) THE ITO rejected all the applications for waiver of interest. Against such order, the assessee moved before the Dy. CIT, Central Range -I, Madras, who, vide order dt. 19th Dec, 1987, ordered to waive total interest as was levied under Section 139(8) of the Act. So far as waiver of interest as was levied under Section 217 of the Act is concerned, it was partially waived for the period beyond 5th Oct., 1984, but interest upto 5th Oct., 1984 was assessed for both the assessment years. In view of the aforesaid order passed by the Dy. CIT, Central Range -I, Madras, the assessing authority, the ITO, issued order on 19th Jan., 1988, and waived total interest as was levied under Section 139(8). So far as the interest under Section 217 for the asst. yr. 1982 -83 is concerned, the ITO waived interest amounting to Rs. 1,85,173 and the balance amount of interest i.e., Rs. 2,83,572 was assessed. In respect of the asst. yr. 1883 -84, after waiving interest levied under Section 217 for the period beyond 5th Oct., 1984, the rest of the interest amount of Rs. 87,946 was assessed. The two revision applications, thereafter, preferred by the assessee, were dismissed by the CIT(Central -I), Madras, by impugned order dt. 6th Dec, 1988, vide C. No. 1511/4(2&3) 87 -88/Cent -I.