K.S. Hazooria vs Chief Commissioner Of Income Tax
2004 Latest Caselaw 148 Del

Citation : 2004 Latest Caselaw 148 Del
Judgement Date : 12 February, 2004

Delhi High Court

K.S. Hazooria vs Chief Commissioner Of Income Tax on 12 February, 2004

Equivalent citations: (2004) 188 CTR Del 74

Bench: B Patel, B D Ahmed

JUDGMENT

1. For the asst. yr. 1990-91, the application for waiver of interest charged under Sections 234B and 234C of the IT Act (hereinafter referred to as the 'Act'), was made which was rejected on 15th May, 2001, against which a rectification application was filed under Section 154 of the Act, This has also been rejected on 29th July, 2003. Against the aforesaid order, the present writ petition is filed.

2. It is required to be noted that earlier the petitioner had approached this Court by way of a writ petition bearing No. 4195 of 2000. The Division Bench after hearing the matter, disposed of the writ petition with the direction that the CIT shall reconsider the matter in the light of the decision of the Supreme Court in the case of CIT v. Ranchi Club Ltd. and the CIT shall undertake the exercise within three months from today. As mentioned above, after the aforesaid order, the petitioner's application has been rejected by an order dt. 29th July, 2003, against which the present petition has been filed.

3. Before us, the point stressed by the petitioner is that interest can be charged only when the specific section under which interest is to be charged is indicated in the order (assessment) itself so as to say that there was an application of mind. This was also the submission before the CIT. It appears that this aspect has not been considered. The CIT has proceeded on the assumption that even if the AO has not indicated the charge of interest under Sections 234B and 234C of the Act in the assessment order, the same can be charged and has placed reliance on the decision of the Supreme Court in the case of CIT v. Anjum M.H. Ghaswala and Ors. . According to the learned counsel for the Revenue, the AO has noted the interest in the sheet annexed to the assessment order at the time of assessment. According to the petitioner, such annexure is not received by him. We direct the Chief CIT to examine the said question afresh in the light of the directions already given. This exercise will be completed within a period of six months. It is made clear that though there were other challenges in the writ petition, we have not discussed the other aspects of the matter here as the matter is being remanded.