TaxTMI 
TaxTMI 
2026 (9) TMI 935
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....3129/2019 is taken as the leading case. 2. The facts that led to the filing of WP(C) No 23129/2019 are as follows:- The petitioner submitted the returns of income for the assessment year 1994-1995 on 29.12.1995, declaring her income as Rs. 1,37,540/-. While submitting the returns, the petitioner claimed deduction under Sec.80 HHC, to the extent of Rs. 48,63,817/-, which constituted deduction in respect of manufactured goods and proviso deduction in respect of export incentives. The assessing officer worked out a negative figure as loss on manufactured goods. The assessee submitted an appeal before the Ist Appellate Authority. In the meanwhile, a rectification application was submitted by the petitioner, and the same was also rejected. Against the same, the petitioner filed an appeal, and as per Ext.P2 order, the Ist Appellate Authority allowed the appeal, accepted the contentions raised by the petitioner and consequently an appeal effect order was passed on 20.03.2003 by the assessing officer. Against Ext.P2 order, the Department submitted an appeal before the Income Tax Appellate Tribunal, which was dismissed. According to the petitioner, both the orders passed by the Ist appel....
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.... made by the petitioner before the Chief Commissioner of Income Tax, and that resulted in Ext.P7 order. As per Ext.P7, the request for refund was rejected on the reason that, the petitioner is not entitled to the benefits of Ext.P5 order, as she does not satisfy the requirements contemplated therein. This writ petition is submitted by the petitioner in such circumstances seeking the following reliefs:- a) To Call for the records leading to the issuance of Exhibit P7 and quash the same by issuing a writ of certiorari. (b) Pending hearing and final disposal of this writ petition, this Hon'ble Court may be pleased to direct the respondents to grant waiver of interest due under Exhibit P4 and refund the interest and penalty paid by the petitioner. (c) Grant such other and further reliefs as this Hon'ble Court may deem fit and proper in the interest of justice. In other writ petitions also, facts and circumstances as well as the sequence of events are similar and the only difference is with respect to the assessment years. 5. In all these cases, counter affidavits were submitted by the Department, reiterating the stand taken by the Chief Commissi....
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....P8, in the light of the guidelines contained in Ext.P5 order, it is submitted by the learned senior counsel that, the petitioner had paid the advance tax and furnished the returns, in the light of the law then existed, on the basis of the decision rendered by this Court in Commissioner of Income Tax v. A.V. Thomas and Co. Ltd [1997 225 ITR 29 (Ker.)] Therefore, clause 2(c) of Ext.P5 is squarely applicable, in view of the fact that, the act of the petitioner, seeking reduction under sec.80HHC, was upheld by the Ist Appellate Authority and also by the Appellate Tribunal, on the basis of the law declared by this Court in A.V. Thomas' case (supra). Although the decisions were recalled and set aside by the High Court, the same was by following observations made by the Hon'ble Supreme Court in IPCA Laboratories Ltd (supra) subsequent to the decision taken in A.V. Thomas' case (supra) by this Court. Since the decisions taken by the Ist appellate authority and the Appellate Tribunal at the first instance, were in the light of the law declared by this Court as per A.V. Thomas' case (supra) the petitioner would fall within the ambit of clause of 2(c) of the Ext.P5 circular an....
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....oners would fall under clause 2(c) of Ext.P5, which is a scheme for granting waiver of interest in certain cases. The said provision reads as follows: "The class of income or class of cases in which the reduction or waiver of interest under Section 234A or Section 234B or, as the case may be, Section 234C can be considered, are as follows: (a)...... (b) ....... (c) Where any income was not chargeable to income-tax in the case of an assessee on the basis of any order passed by the High Court within whose jurisdiction he is assessable to income-tax, and as result, he did not pay income-tax in relation to such income in any previous year, and subsequently, in consequence of any retrospective amendment of law of the decision of the Supreme Court of India, or as the case may be, a decision of a Larger Bench of the jurisdictional High Court (which was not challenged before the Supreme Court and has become final), in any assessment or reassessment proceedings the advance tax paid by the assessee during such financial year is found to be less than the amount of advance tax payable on his current income, and the assessee is chargeable to interest under Section 234....
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....id the entire income tax (principal component of the demand) due on the income as assessed and it was found by the respondents that, the said condition has not been complied with by the petitioner in W.P.(C).No. 23207/2019. Even though, she may be eligible to claim the benefit under Section 2(c) of Ext P5, on account of non-compliance of this condition, no interference in the order rejecting the waiver of interest claimed. 14. As far as the contention raised by the learned senior counsel, placing reliance upon sub-section 3 of Section 234B of the Act, the crucial aspect to be noticed is that, the petitioner is not challenging the imposition of interest as per the orders issued in this regard. What is under challenge is only the rejection of application for waiver on the basis of Ext.P5. Ext.P7 which is the application submitted by the petitioner, the petitioner is claiming only the benefit of the waiver of interest as provided in the said order and at no point of time, any challenge has been raised, by placing reliance upon sub-section 3 of Section 234B. Moreover, as far as sub-section 3 of Section 234A is concerned, the same may not be applicable in this case in view of the fac....