2004 (8) TMI 54

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....equential reliefs. Briefly stated the facts giving rise to the present petition are as follows: The petitioner claims himself to be a resident of Punjab. He owned lands in Fazilka District Firozpur in the State of Punjab which have been acquired by the Government of Punjab under the provisions of the Land Acquisition Act, 1894. The petitioner got compensation pursuant to the order passed by the Punjab and Haryana High Court on September 12, 1990, and May 19, 1993. Even though he had received the compensation, the State Government did not pay interest thereon forcing the petitioner to approach the Punjab and Haryana High Court once again. The Punjab and Haryana High Court awarded interest also. Thereafter the petitioner had been paid t....

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....urt, the Chief Commissioner of Income-tax, Meerut vide order dated January 22, 2004, had once again rejected the application of waiver. It is alleged by the petitioner that pursuant to the show-cause notice issued on December 2, 2003, he had appeared on December 8, 2003, before the Additional Commissioner of Income-tax who was busy in his official work and asked him to come again. He appeared on December 17, 2003, before the Additional Commissioner of Income-tax who asked the petitioner to approach the Income-tax Officer. The petitioner approached the Income-tax Officer and asked for personal hearing in the matter and no personal hearing had been given by the Additional Commissioner of Income-tax, Meerut. The Chief Commissioner of Income....

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....er had filed the returns of income for the assessment years 1995-96 to 2001-02 disclosing the interest income as it was received only on August 21, 2001. The interest income is taxable on accrual basis every year. The petitioner was claiming waiver of interest and penalty for the assessment years 1995-96 to 2001-02 only and had paid the entire amount of tax. Thus the order passed by the Chief Commissioner of Income-tax, Meerut which is based on extraneous and irrelevant consideration is liable to be set aside. He relied upon the following decisions: (1) Bhairav Lal Verma v. Union of India [1998] 230 ITR 855 (All) [FB]; and (2) Commr. of Customs v. Indian Oil Corporation Ltd. [2004] 267 ITR 272 (SC); [2004] 3 SCC 488. Shri Awasthi, ....

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....stances and such return of income is filed voluntarily by the assessee or his legal heirs without detection by the Assessing Officer, the interest under sections 234A, 234B and 234C can be waived or reduced. The Chief Commissioner of Income-tax had proceeded on the assumption that the interest income ought to have been declared on receipt basis and as the petitioner had not disclosed a full amount of interest income and had only disclosed the part of the said income by filing the returns for the assessment years 1995-96 to 2001-02 when it could have filed the return for the earlier assessment years also is wholly misconceived. It is well settled that the amount of interest paid on the enhanced amount of compensation accrues every year and i....

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.... where an authority makes an order in exercise of quasi judicial function it must record its reasons in support of the order it makes. Similar view has been taken by the apex court in the case of Kishan Lal [1998] 230 ITR 85. In the case of Anand Liquors [1999] 235 ITR 674 the Kerala High Court has held that the Commissioner of Income-tax also should have considered the question as to whether the petitioner had complied with the conditions provided for waiver or reduction of the interest levied under section 220(2) of the Act as specified in sub-section (2A) of section 220. In the case of Auro Food Ltd. [1999] 239 ITR 548 the Madras High Court has held that the power vested under section 220(2A) of the Act is a discretionary power and it is....

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....s to whether the Department has any incriminating material with regard to the disclosed income. If the answer is in the affirmative, the disclosure cannot be said to be voluntary. But if the Department has no incriminating material with regard to the income disclosed, the disclosure is liable to be treated as voluntary even if it was made after raid/search. Applying the principles laid down in the aforesaid cases to the facts of the present case we find that the petitioner had filed the revised returns of income for the assessment years 1995-96 to 2001-02 voluntarily and had also paid the taxes due thereon. He was claiming waiver of interest and penalty for these assessment years only. The Chief Commissioner of Income-tax, Meerut, had ta....