DINESH SHARMA Vs. CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition seeks quashing of order dt. 18th Dec, 2009, Annex. P1, passed by the Chief CIT, rejecting application for waiver of interest under Section 158BFAI(a) of the IT Act, 1961 (for short, "the Act") for the assessment years covering assessing years 1988-99.

(2.) After a search was carried out at the premises of the assessee on 20th Nov., 1997, notice under Section 158BC of the Act was issued, requiring the assessee to file return. Accordingly, return dt. 27th Aug., 1999 was filed after expiry of the statutory period. Block assessment was completed and undisclosed income was assessed. The assessee approached the Settlement Commission. The Commission disposed of the matter under Section 245D(4) of the Act on 12th Dec, 2003. As regards interest, it was held that the assessee will be liable to pay interest under Section 158BFA(1)(a) of the Act. The assessee filed an application for waiver of interest before the Chief CIT relying upon circular issued by the CBDT dt. 6th Jan., 2003. The Chief CIT dismissed the application by holding that in view of provisions of Section 245-I, the order of the Commission could not be amended and the Chief CIT could not waive interest contrary to the decision of the Commission that the assessee was liable to pay interest.

(3.) We have heard learned Counsel for the petitioner.