1976 (2) TMI 81

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....ld have been charged was not charged by the ITO. No reasons were given for that omission. Therefore the CIT is certainly right in thinking that the assessment order is erroneous in so far as it is prejudicial to the interests of revenue. To that extent the CIT is certainly right because there is nothing on record to show that the ITO has exercised his discretion and waived the interest and that is....

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.... default on the part of the assessee of filling the return belatedly." 4. We think that the direction given to the ITO to charge interest is not justifiable in the circumstances of the case. This impugned order deprives the assessee of her valuable right to claim waiver of interest under Rule 117 of the Income-tax Rules, 1962 which rules can be operated only by the ITO. The facts of the case cl....

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.... assessee of the opportunity to plead for waiver by passing such impugned order. It is true that the assessee did not plead before the CIT that she has a case for waiver of interest. But that was only because of lack of effective opportunity brought about by the attendant circumstances like the pressing necessity to pass the impugned order on or before a particular date after which date it would g....

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....hink fit to pass in this case. The assessee requires us to cancel the order. The departmental representative argued that if the order is not justifiable in the circumstances of the case the appropriate order to be passed by the Tribunal is an order modifying the Commissioner's order and permitting the assessee to plead for waiver before the ITO particularly when the Tribunal is inclined to hold th....