Retrospective interest waiver power extends to earlier assessments later modified in appeal under the amended proviso.

The retrospective fifth proviso to section 18A(6) empowered the Income-tax Officer to reduce or waive interest in prescribed cases, and that discretion was not limited to assessments made after 1 April 1952. The provision applied to assessments that had been completed earlier but remained subject to modification in appellate proceedings, where the assessment liability and related interest could still be adjusted. On that basis, the officer could consider relief even after the original assessment had been made, provided the case fell within the prescribed circumstances. The proviso was therefore treated as applicable to pending or subsequently modified assessments.

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Issues: Whether the power conferred by the fifth proviso to section 18A(6) could be exercised in respect of assessments completed before 1 April 1952, where the assessment liability was later modified in appeal and the Income-tax Officer was asked to consider reduction or waiver of interest.

Analysis: Section 18A(6), as amended by the retrospective proviso inserted with effect from 1 April 1952, and the corresponding rule empowered the Income-tax Officer to reduce or waive interest in prescribed cases and circumstances. The power was not confined to assessments made after the amendment date; the text of the rule did not require that relief be granted only before completion of the regular assessment. Since the assessment and interest liability remained capable of modification in appellate proceedings, and the amended proviso was intended to apply retrospectively to assessments pending on the relevant date, the discretion could be exercised even where the original assessment had been made earlier but was later adjusted in consequence of appellate orders.

Conclusion: The proviso applied to the assessments in question, and the Income-tax Officer had jurisdiction to consider waiver or reduction of interest.

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