Waiver of interest under section 158BFA(1) unavailable without statutory power; refusal to waive was upheld.

Interest levied under section 158BFA(1) could not be waived because section 119(2)(a) authorises waiver orders only for the interest provisions specifically listed in that section, and the circular relied upon did not extend to this levy. In the absence of any statutory power in the authority or the Board to grant such waiver, the refusal was upheld, and no serious illegality was found in the High Court's affirmation of the administrative decision. The special leave petition was dismissed.

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Issues: Whether the authority had power to waive interest leviable under section 158BFA(1) of the Income-tax Act, 1961, and whether interference was warranted under Article 136 of the Constitution of India.

Analysis: Section 119(2)(a) of the Income-tax Act, 1961 empowers the Board to issue orders for waiver of interest only in respect of the provisions specified therein, including sections 234A, 234B and 234C. The circular relied upon by the assessee was issued under that provision and did not extend to interest levied under section 158BFA(1). In the absence of any statutory power vested in the authority or the Board to waive such interest, the refusal to grant waiver was upheld. The Court found no serious illegality in the High Court's order affirming the decision of the Director General of Income-tax (Investigation).

Conclusion: The authority had no power to waive interest under section 158BFA(1), and the special leave petition was dismissed.

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