MUKESH MAHAJAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS judgment shall dispose of the writ petition filed by the petitioner under Art. 226 of the Constitution of India for interest levied be waived under s. 139(8) and s. 215/217 of IT Act, 1961 and the amount be refunded in favour of the petitioner.

(2.) BRIEFLY stated, the facts of the case are that the petitioner is a partner of the firm styled as M/s S.K. Associates. The petitioner filed his return of income amounting to Rs. 1,00,075 for the asst. yr. 1988 -89 with the AO, Palampur. The petitioner has disclosed that he had income of Rs. 1,00,075 including 50 per cent of share of profit in the firm M/s S.K. Associates of which he was a partner. He filed the return of income in individual capacity as well as on behalf of the firm for the year 1988 -89 simultaneously after the petitioner ascertained his share of income from the said firm. It was further alleged that at the time of filing the return by the petitioner, he had alleged that the tax payable on the basis of returns filed by the petitioner be deducted/adjusted out of returnable amounts to the said firm as excess tax stood paid by the firm by way of TDS. It was further alleged that the amounts of tax assessed and penal interest levied amounting to Rs. 17,806 and Rs. 19,341 were accordingly adjusted from the refundable amounts of the firm and nothing remained payable as tax or penal interest by the petitioner. It was alleged that late filing of return by the petitioner does not constitute a ground for disentitling an assessee the benefit envisaged under s. 273A. It was alleged that the petitioner has paid all the tax and interest. Consequent upon order passed under the Act, his request for waiving the penal interest alleged that the petitioner filed a petition before respondent No. 1 for waiver of the penal interest who rejected the plea such, the said order deserves to be set aside by exercising the writ jurisdiction by this Court.

(3.) A notice of the petition was issued to the respondents and the writ petition was admitted.