- (1.) In this petition under Article 226 of the Constitution, the petitioner challenges the order dated 31.12.1992/12.1.1993 passed by the Commissioner of Income Tax, Jaipur under S. 264 of the Income Tax Act, 1961 (for short, 'the Act') as well as the order dated 3.8.1992 of the Assessing Officer Company Circle, Jaipur whereby the applications filed by petitioner company under rule 117(A) of the Income Tax Rules, 1962 (for short 'the Rules') for waiver of interest under S. 139(8) of the Act were rejected.
(2.) The assessee had sought waiver of interest charged under S. 139(8) of the Act for the assessment years : Assessment yearIntt. charged under S. 139(8) 1981-8260,832/- 1982-8368,852/- 1983-842,10,266/- 1984-851,58,179/- 1985-861,45,442/- 1986-87 94,802/- 7.38,733/-
(3.) The waiver of the interest was sought on the ground that the returns could not be filed in time due to non- finalisation of accounts as the assessee company was under liquidation from 10.5.1968 to 2.11.1979. The Official Liquidator did not prepare the balance-sheet and the returns were filed on the basis of receipt and expenditure accounts. Thus, the ground taken by the assessee for the waiver of the interest was the absence of balance-sheets for the earlier years, when the company was under liquidation and this delayed the finalisation of accounts and the returns were filed late. This aspect was considered by the concerned officer and the prayer of the petitioner company for reduction or waiver of the interest was declined. The concerned officer found that the cause shown by the petitioner company was not sufficient within clause (v) of Rule 117(A) of the Rules. This aspect was also considered by the Commissioner of Income Tax in his impugned judgment and the prayer was rejected stating: "It is noted that the return for the assessment year 1980-81 was filed on 30.5.80 allegedly on the basis of provisional accounts. From the records it is noted that there was no change in these accounts in the course of proceedings. Therefore, the claim that non-finalisation of the accounts for the subsequent years, i.e. 1981-82 to 1986-87 was on account of non-preparation of accounts for the period during which the company was under liquidation is not correct. Various decisions cited by the assessee only hold that delay in filing the return on account of non-finalisation of the accounts constituted a reasonable cause in not imposing the penalty for late filing of the return. In this particular case, the reason given is not correct. The delay is for as long as 31 months in the assessment years 1983-84 and 1984-85. The case law referred to by the assessee, therefore, does not help in view of the facts and circumstances of the case.";