- (1.) THE main question involved in this case is: 'Whether the period, during which account books were seized by the income tax department (the Department), is unavoidable circumstance within the meaning of the notification dated 23.5.1996 (the Notification) issued by the Central Board of Direct Taxes (the Board) under Section 119(2) (a) of the Income Tax Act, 1961 (the Act), so as to entitle an assessee for the waiver of interest under Section 234Aof the Act.
(2.) THE aforesaid question arises out of the order dated 10.8.2004 passed by the Chief Commissioner of Income Tax, Ghaziabad (the CCIT) on the application for the waiver of interest under Sections 234A to 234C of the Act in respect of assessment years (AYs) 1990-91 to 1992-93. THE FACTS Sri Devendra Kumar Jain and Sri Subhash Chand Jain are partners in the firm M/s JSD Consultants (the Firm). They are also directors in M/s JSD Colonizers (P) Ltd (the Assessee). A search took place on 14.2.1991 at the premises of the Firm as well as at the residences of its partners. In the search, accounts books and some other documents were seized. The head office of the Assessee is also in the same premises; and its accounts books were also seized.
(3.) THE Assessee filed an application for obtaining the photo-stat copies of the accounts book and ultimately accounts books were given back on 13.4.1994. The Assessee had neither filed the returns nor the advance tax for the relevant AYs; they were filed on 16.12.1994. The assessment orders were passed and interest under Sections 234A to 234C was also imposed.;