KAILASH MILLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD Shri Vikram Gulati, learned counsel for the petitioner, and Sri Prakash Krishna for the Department.

(2.) THE petitioner has challenged the impugned order of the CIT under S. 273A of the IT Act, 1961, dt. 19th July, 1984, annexure 2 to the petition. In this petition we are only concerned with the claim of waiver of interest under S. 139(8) which has been denied by the CIT.

(3.) IT is well settled that if the conditions in cl. (c) of S. 273A(1) of the IT Act are fulfilled, the CIT must give some relief to the petitioner, though he has discretion in granting either total waiver or partial waiver depending on the facts of the case, but he cannot reject the application under s. 273A in toto when the conditions mentioned under S. 273A(1)(c) are fulfilled vide Jaswant Rai vs. CBDT (1998) 147 CTR (SC) 110 : (1998) 231 ITR 745 (SC). In this case it has been observed by the Supreme Court that in deciding the application under S. 273A, the CIT has to take into consideration the conditions mentioned in that provision, but he cannot take into account factors or reasons which are extraneous to those conditions specified in the provision. In the present case the reasons given for rejecting the petitioner's application for waiver of interest under S. 139(8) are not those mentioned in cl. (c) of S. 273A(1).