BOHRA INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) By way of this writ petition, the petitioner has questioned the legality of order dated 20.5.15 passed by the Chief Commissioner of Income Tax (CCIT), Udaipur, rejecting an application preferred by the petitioner under Section 119 (2)(a) of the Income Tax Act, 1961 (for short "the Act"?) for waiver of interest under Section 234A, 234B and 234C of the Act.

(2.) The facts relevant are that the petitioner, a Company, registered under the Indian Companies Act, 1956, submitted its return of income for the Assessment Year 2011-12 on 23.3.12 declaring total income after deductions at Rs.4,99,47,389/-. The total tax payable including surcharge, education cess, secondary and higher education cess, was quantified at Rs.1,53,89,703/-. The return of income filed by the petitioner was processed under Section 143 (1) of the Act and thereafter, rectification order was passed on 13.6.12 wherein the interest under Section 234A for Rs.9,18,606/- , interest under Section 234B for Rs.18,25,256/-and interest under Section 234C for Rs.7,73,159/- was charged on account of delay in payment of taxes including advance tax. The petitioner preferred a petition for waiver of interest before the CCIT, Udaipur, on the ground that the delay in filing the return of income was occasioned on account of unavoidable circumstances, beyond the control of the petitioner inasmuch as, there was considerable delay in payment of substantial amount of subsidy by the Government for which the petitioner was entitled under the Nutrient Based Subsidy (NBS) Policy for Single Super Phosphate Fertilizer implemented w.e.f. 1.5.10. It was contended that the petitioner did not receive any interest on delay in disbursement of the subsidy and therefore, charging of interest for delay in payment of taxes/advance tax is unjustified. According to the petitioner company, it had become victim of two wings of the Government; one wing withholding its substantial payment for considerable time in form of subsidy and other wing by charging of interest for delay in payment of tax/advance tax. The petitioner explaining the tight liquidity position for the waiver of interest relied upon Circulars dated 23.5.96 and 26.6.06 issued by the Central Board of Direct Tax (CBDT). The petitioner claimed that clause (d) of CBDT circular dated 26.6.06 and clause (e) of circular dated 23.5.96 clearly bring out that where return could not be filed by the assessee due to circumstances beyond his control and such return is filed voluntarily by the assessee without detection by the Assessing Officer, then the assessee is entitled to grant of waiver of interest chargeable under Section 234A, 234B and 234C of the Act.

(3.) After due consideration of the submission of the petitioner, the petition preferred by the petitioner seeking waiver of interest has been rejected by CCIT by the order impugned. Hence, this petition.