TaxTMI 
TaxTMI 
2015 (5) TMI 480
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....s under challenge in this writ petition. 2. The petitioner is a public sector undertaking. It is an assessee under the Act on the file of the first respondent. For the assessment year 1990-91, the petitioner filed returns claiming the benefit of carried forward loss of Rs. 6,42,65,257/-, worked out its book profit at Rs. 3,61,32,102/- and offered the same for taxation under Section 115J of the Act. The first respondent while completing the assessment levied interest under Section 234C of the Act on the ground that there was shortfall in the payment of advance tax. The petitioner had though challenged the assessment order before the first appellate authority, the levy of interest under Section 234C of the Act was upheld by the first appella....
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....rned counsel for the petitioner contended, relying on the decision of the Karnataka High Court in Kwality Biscuits Ltd. v. Commissioner of Income Tax [2000 Vol.243 ITR 519] that since the book profit cannot be determined before the end of the relevant assessment year, the petitioner is not obliged to pay interest under Section 234C of the Act for non-payment of advance tax on the book profit. 5. Section 119 (1) and 119(2)(a) of the Act reads thus : "119. (1) The Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such....
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.... information;" It is clear from Sections 119(1) and 119(2)(a) of the Act that the statute had conferred authority to waive interest payable under Sections 234A, 234B and 234C only on the Central Board of Direct Taxes and it is based on the general or special orders issued by the Board, the other income tax authorities are exercising the power of waiver. It is also clear from the aforesaid Sections that the income tax authorities other than the Board are empowered and authorised to waive interest only in accordance with the guidelines, principles and procedures specified by the Board in general or special orders issued by the Board. The classes of incomes and cases in respect of which the Chief Commissioner of Income Tax is authorised to wa....
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.... payable on his current income, and the assessee is chargeable to interest under section 234B or section 234C, and the Chief Commissioner/Director General is satisfied that this is a fit case for reduction or waiver of such interest." As stated above, the second respondent is empowered and authorised to waive interest payable by the petitioner under Section 234C of the Act only if the case of the petitioner falls under any of the two classes of cases referred to above. The petitioner has no case that its case would fall under the said classes of cases. The contention raised by the learned counsel for the petitioner that since the book profit cannot be determined before the end of the relevant assessment year, the assessees are not obliged ....