Waiver of interest : S. 234A, S. 234B and S. 234C of Income-tax Act, 1961 and CBDT Circular No. 400/234/95-IT(B), dated 23-5-1996 : A.Ys. 1991-92 and 1992-93 : Death of father who was looking after business : Entire tax paid voluntarily and extra amount a

[V. Akilandeswari v. CCIT, 318 ITR 1 (Mad.)]

The petitioner was a minor during the A.Ys. 1991-92 and
1992-93. For these two years the returns were filed voluntarily and taxes were
paid. Assessment was completed and interest was levied u/s.234A, u/s.234B and
u/s.234C of the Income-tax Act, 1961. The petitioner’s application for waiver
of interest was rejected by the Chief Commissioner.

The Madras High Court allowed the writ petition filed by
the petitioner and held as under :

“(i) The fact of the death of the petitioner’s father who
was looking after the business and as well as that the petitioner’s mother
and guardian was a housewife unfamiliar with such transactions was not
denied by the Chief Commissioner. The petitioner had paid the entire tax
voluntarily and had also paid some extra amount. The claim made by the
petitioner was bona fide and genuine and the Chief Commissioner had
not exercised his discretion in terms of law.

(ii) Thus the levy if interest u/s.234A, u/s.234B and u/s.234C was set
aside and the petitioner did not need to pay any interest for the two
assessment years. The petitioner was not entitled to seek refund of the excess
amount if any paid.”