- (1.) Heard learned counsel for the parties. In the instant case interest was sought to be levied on the appellant under Sec. 220(2) of the Income-tax Act on account of default having been committed by the appellant in payment of Income-tax within time. In order to avoid this levy, the appellant filed an application under sub-section (2-A) of Sec. 220 before the Central Board of Direct Taxes, inter alia, stating facts and reasons as to why the amount of interest which was payable should be reduced, if not waived altogether. Reasons for seeking a favourable order were contained in the application.
(2.) The appellant received a letter dated 29th January, 1987 whereby this application was rejected. The said letter reads as follows:- "Please refer to your petition dated nil and further petition dated 24-11-86 on the subject mentioned above. The matter has been examined by the Board. After considering the application filed by you and the report of CIT in the matter, the Board is of the view that the conditions as laid down in Section 220 (2A) are not satisfied in your case and hence regrets its inability to interfere in the matter."
(3.) A writ petition under Art. 226 of the Constitution was then filed in the High Court of Delhi and it was contended that while rejecting the application the Central Board of Direct Taxes had given no reasons. The High Court observed, while dismissing the writ petition, that the order of the CBDT could not be said to be vitiated for this reason.;