1997 (2) TMI 35

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....ions arising in both the petitions are identical, these are being decided together. Both the petitioners herein had invested, as partners, certain money by way of capital in a partnership-firm, Azad Rice Mills, Malerkotla. The Assessing Officer issued notices under section 147 read with section 148 of the Income-tax Act, 1961 (for short, "the Act"), on the ground that certain taxable income had escaped assessment. Both the petitioners filed returns of income, showing only agricultural income. Notices had been issued for the assessment years 1987-88 and 1988-89. Since the present writ petitions relate to a question regarding waiver of interest for the assessment years 1987-88 and 1988-89 the facts relevant to those orders are being examin....

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....ection 217 had been waived in similar circumstances and, therefore, similar view must be taken in the case of the petitioner also. This plea, however, did not find favour with the Commissioner of Income-tax and the petitioner's revision application came to be rejected. In the case of Mohd. Rehmat Ullah (in CWP No. 13599 of 1996), assessments were framed, after issuing notice under section 147 read with section 148 of the Act, by a common assessment order dated March 28, 1994, for the assessment years 1987-88 and 1988-89. Taxable income was determined by the Assessing Officer for the assessment year 1987-88 at Rs. 1,05,000. Interest was also charged under sections 139(8) and 217 of the Act. In appeal, assessment made at Rs. 1,05,000 for t....

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.... in the case of Mohd. Yousuf, no such relief was granted. Since the facts and circumstances in the cases of both the petitioners, who were brothers, were identical and both had been assumed to be deriving income from other sources, there was no sufficient reason to take divergent views while dealing with the applications seeking waiver of interest. Interest under section 139(8) of the Act is chargeable if an assessee files return after the due date or fails to file the return. Interest is charged on the amount of tax which is found payable by the assessee tit the time of assessment. Interest under section 217 is chargeable if In assessee fails to file the statement or the estimate of advance tax and does not pay the advance tax. Interest....