V RAMANUJAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioners in both the writ petitions are one and the same. THE facts and relief sought for are also identical. THE facts, leading to filing these writ petitions are as follows :

(2.) THE petitioner had filed his return of income on March 26, 1986, for the assessment year 1985-86 admitting a total income of Rs. 60,04,050 in pursuance of the settlement arrived at with the Commissioner of Income-tax, Central-I, by his proceedings in C. No. 51544/1(3) of 1985-86/Central-I dated March 25, 1986. THE Income-tax Officer completed the assessment on July 8, 1986, at a total income as returned by the assessee and while completing the assessment, he also levied interest under Section 139(8) of the Act to the extent of Rs. 3,07,650 and also interest under Section 215 of the Act to the extent of Rs. 4,96,031.

(3.) AGGRIEVED by the said order, the petitioner has filed a petition under Section 264 of the Income-tax Act to the Commissioner of Income-tax, Central-I, to waive the entire payment of interest, on the ground, that he had agreed to pay the income-tax on the amount arrived at in the settlement and the payment of interest was not contemplated at that time. Further, returns were also filed during the period of amnesty scheme. Hence, the benefit of the amnesty scheme also should be extended to the petitioner. The respondent, by his order dated September 2, 1988, in C. No. 1511/1(1&2) of 1987-88, Central-I, dismissed the waiver petition and observed that there was no jurisdiction for any further reduction of waiver under Rules 40 and 117A of the Income-tax Rules, which according to the petitioner, is illegal and contrary to law. AGGRIEVED by the said order, the petitioner filed the present writ petitions.