1996 (12) TMI 11

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.... said returns filed by the petitioner. Subsequently, the Income-tax Officer issued notices to the petitioner under section 148 of the Act directing it to file its returns for the years 1978-79 to 1982-83. In compliance with the said notices the petitioner filed separate returns for the aforesaid years. Based on these returns, the Income-tax Officer completed the assessment for the aforesaid years and levied penal interest under section 139(8) for the non-filing of the return on the due dates and also levied interest under section 217 for non-remittance of advance tax and for not filing of estimate in terms of section 209 of the Income-tax Act. The assessment orders for the above five years are evidenced by exhibits P-1 to P-5. On receipt of....

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....me for all these years were filed beyond the statutory period and such belated returns were invalid in law and so no assessments could be made on the basis of such invalid returns and in that sense the levy of interest was not correct. In other words, the contention of the petitioner was that the levy of interest under section 139(8) and under section 217 in assessments pursuant to invalid returns is illegal and should be cancelled. The said contention was rejected by the Commissioner holding that the assessments for the years 1978-79 to 1982-83 were not made pursuant to the belated returns filed by the petitioner, but only on the basis of the returns filed by the petitioner for the aforesaid years pursuant to the notice issued under sectio....

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....gular assessment for the purpose of invoking section 217 of the Act. The said contention was accordingly rejected. The assessing authority has considered the question of waiver with reference to the provisions of rules 40 and 117A of the Rules and found that there is no case for waiver or reduction of interest under section 139(8) or under section 217 of the Act, and that no case was made out before the Commissioner for grant of such relief. Though learned counsel for the petitioner has argued before me that the respondents were not justified in refusing to grant the relief of waiver/reduction of interest levied under section 139(8) and under section 217, I do not find any reason to interfere with the orders passed by the authorities bel....