TaxTMI 
TaxTMI 
2017 (11) TMI 262
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....y for the disposal of the above writ petition, are as follows : The petitioner's husband Sri.R.Eswaramurthy filed an application before the Settlement Commission under the Act for settling the case pertaining to the assessment years 1988-89, 1989-90, 1991-92 and 1992-93. The application was filed on 12.3.1996. When the said application was pending, the said Sri.R.Eswaramurthy died on 20.8.1996. The petitioner - his wife, as the legal heir, pursued the matter before the Settlement Commission and the final order dated 30.7.2002 was passed by the Settlement Commission under Section 245D(4) of the Act. The petitioner was permitted to pay the tax along with interest in twelve (12) equal quarterly instalments. The first quarterly instalmen....
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.... 3. The petitioner's case is that the assessee, namely, the petitioner's husband approached the Settlement Commission on 12.03.1996, by filing an application for settling the issues pertaining to the assessment years 1988-89, 1989-90, 1991-92 and 1992-93. The application was admitted by the Settlement Commission on 26.04.1996. However, within a period of four months, thereafter, the petitioner's husband died and the petitioner, as legal heir, pursued the matter. The Settlement Commission passed an order on 30.07.2002. The petitioner has remitted the tax between the periods 2004 and 2010, along with appropriate interest and interest on interest. 4. In the year 2011, the respondent issued notice claiming interest....
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.... 7. In view of the above, there shall be an order of interim injunction restraining the respondent/Revenue from proceeding further, pursuant to the impugned order, until further orders. 8. List the case on 22.09.2017. The learned Standing Counsel appearing for the respondent is directed to file the counter, in the meantime." 6. After the notice was accepted on behalf of the respondent, the respondent instructed the learned Senior Standing Counsel through the Income Tax Officer (HQ) (Tech. & TPS-2), Coimbatore, vide communication dated 13.9.2017. As noticed by this Court while granting the order of interim injunction, the petitioner did not have adequate opportunity to put forth her submissions. This is so because the applicatio....
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....were furnished to the assessee or the authorized representative at the time of personal hearing. In the parawise instructions given by the Income Tax Officer, there is a candid admission that reports were referred to. But, the Authority took a stand that the reports of the Lower Authorities were only taken into account for reference purpose. 10. Be that as it may, if the respondent is to take a decision based on such a report, principles of natural justice deem fit that the petitioner shall be put on notice about such report. Therefore, the finding recorded by the respondent that the assessee possessed necessary means to make payment of tax is not borne out by records nor it is clear as to how such a finding was recorded. This is more so....
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....d against the petitioner for non adherence to the instalment schedule. However, the notice demanding interest on interest was issued only on 31.3.2010 after the petitioner completed the payment of entire tax and interest on 15.3.2010. Therefore, it cannot be held that the attitude of the petitioner lacks reciprocity and cooperation. 12. This Court had an occasion to consider an identical issue in the case of Mani Vs. CIT [reported in (2010) 320 ITR 472] and held that when an application is filed under Section 220(2A) of the Act, the Authority concerned is called upon to take a quasi judicial decision and if he is satisfied that the reasons assigned in the application would bring the case under any of the conditions in Clauses (i), (ii) a....