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Ambica Chemical Products Vs. Income-tax Officer - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAndhra Pradesh High Court
Decided On
Case NumberWrit Petition Nos. 5837, 5842, 5849 and 5854 of 1985
Judge
Reported in[1991]191ITR382(AP)
ActsIncome Tax Act, 1961 - Sections 139, 139(8), 215, 217 and 258; Income Tax Rules, 1962 - Rules 40 and 117A
AppellantAmbica Chemical Products
Respondentincome-tax Officer
Appellant AdvocateK. Ranganatha Chari, Adv.
Respondent AdvocateM.S.N. Murthy, Adv.
Excerpt:
.....- sections 139, 139 (8), 215, 217 and 258 of income tax act, 1961 and rules 40 and 117a of income tax rules, 1962 - writ petition against order of income tax officer levying interest under sections 139 and 258 - petitioner contended that interest was levied without giving any opportunity - rules 40 and 117a require that opportunity must be given to assessee to show cause why interest should not be levied - held, order to the extent of interest liable to be quashed - fifteen days time given to petitioners to file representation before officer. head note: income tax interest under s. 139/215/217--leviability--interest levied without giving any opportunity to assessee--order levying interest therefore quashed. held: uner r. 40 and 117a of the it rules, 1962, the ito is vested with..........assessee and the income-tax department. 2. these writ petition are filed against the orders of the income-tax officer levying interest under section 139 and 258(sic) of the income-tax act. the grievance of the petitioners is that the interest was levied without giving then any opportunity. under rules 40 and 117a of the income-tax rules, 1962, framed under the income-tax act, the income-tax officer is vested with discretion to waive or reduce interest under certain circumstances. by implication, these rules require that an opportunity must be given to the assessee to show cause why interest should not be levied or to satisfy the income-tax officer that there is a case for waiver or reduction. in these cases, no opportunity was given. we, therefore, quash the orders to the extent of.....
Judgment:

Amareswari, J.

1. Heard counsel for the assessee and the Income-tax Department.

2. These writ petition are filed against the orders of the Income-tax Officer levying interest under section 139 and 258(sic) of the Income-tax Act. The grievance of the petitioners is that the interest was levied without giving then any opportunity. Under rules 40 and 117A of the Income-tax Rules, 1962, framed under the Income-tax Act, the Income-tax Officer is vested with discretion to waive or reduce interest under certain circumstances. By implication, these rules require that an opportunity must be given to the assessee to show cause why interest should not be levied or to satisfy the Income-tax Officer that there is a case for waiver or reduction. In these cases, no opportunity was given. We, therefore, quash the orders to the extent of interest only. We give fifteen days' time from today to the petitioners to file representations before the concerned Officers. No further notice need be issued by the Income-tax Officer. The Income-tax Officer shall consider the representations after giving a personal hearing to the petitioner and pass fresh orders in accordance with law. In all other respect, the impugned orders stand. With this direction, the writ petitions are disposed of. No costs.


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