P RAMASAMY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE writ petition is for the issue of a writ of certiorarified mandamus to call for the records relating to the petitioner in C. No. 1325B(8) of 1986-87 on the file of the first respondent and quash the impugned order dated July 27, 1988, and consequently direct the first respondent to waive the interest of Rs. 49, 778 levied under section 220(2) of the Income-tax Act, 1961, for the assessment year 1971-72It is alleged in the affidavit in support of the petition as followsDuring the assessment year 1971-72, the petitioner, was a partner in a firm, P. Ramasamy, consisting of three partners.

(2.) THE Income-tax Officer, City Circle IV(8), Madras-6, the second respondent herein, rejected the registration under section 185(1)(b) of the Income-tax Act, 1961 (herein-after referred to as the "Act"), for the firm P. Ramasamy, and took the view that the petitioner was the owner of the so called firm of P. Ramaswamy in individual capacity and determined the total income at Rs. 6, 19, 710.

(3.) THE letter has given the details as to how the amount was arrived at. THE petitioner filed an application under section 220(2A) of the Act before the Central Board of Direct Taxes, New Delhi, for waiver of interest. He has given the reasons which would entitle him to have waiver of interest. THE delay in the payment of the amount of tax was due to circumstances beyond his control and there was prolonged litigation which commenced in the year 1974 and came to a close only after ten years. He had co-operated with the Department in all enquiries relating to the assessments as well as recovery proceedings to complete the assessments and to pay the income-tax as early as possible and he was always interested in settling the matter by completing the assessments and appeals and to prove his bona fides he had paid all the taxes.