2007 (2) TMI 211

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....e petitioner, a firm, is dealing in construction and sale of flats. One N. Haridas was its managing partner. With a view to avail of the benefit of the Voluntary Disclosure of Income Scheme, 1997, the managing partner, Haridas, made declaration on March 31, 1997. But, he fell ill and he was diagnosed with brain cancer. He became bedridden and died on February 20, 1998. In that melee, the tax could....

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....ence, the petitioner could not pay the tax as demanded, but the respondent Department without taking into account the unavoidable circumstances, levied interest which is erroneous, illegal and against law. Concededly, the petitioner has paid the tax as demanded by the Department after reassessment. Originally, the petitioner sought to avail of the benefit of the Voluntary Disclosure of Income S....

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....rning waiver of interest. On the other hand, a reading of the notification F. No. 400/234/95/IT(B) dated May 23, 1996, as found in the counter affidavit, shows that the Chief Commissioner, the first respondent herein, can waive or reduce interest, if he is satisfied that it is a fit case to do so on the facts and circumstances. That apart, the petitioner has produced a copy of the notification ....

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....r filed a revised return on receipt of notice under section 148 of the Income-tax Act and paid tax accepting the reassessment. We, therefore, hold that the first respondent is not correct in rejecting the claim of the petitioner for waiver of interest without properly appreciating the facts and circumstances of the case. Accordingly, the impugned order is liable to be set aside. Considering the fa....