DALIP SINGH,J. - (1.) IN this writ petition, the petitioner has challenged among others the order dt. 11th Sept., 1991 (Annex. 1) which is an order passed on the application under Section 154 read with Sections 220(2A) and 273A of the Income -tax Act, 1961 (hereinafter referred to as 'the IT Act'), moved by the assessee -petitioner.
(2.) THE facts need not be mentioned in detail. Suffice it to say that there was a demand of tax, interest and penalty against the petitioner, Sangram Singh Mehta for the asst. yr. 1966 -67. The petitioner was unable to meet the said demand on account of various reasons mentioned in the writ petition and subsequently the petitioner moved an application dt. 7th March, 1988 (Annex. A) before the CIT, Jaipur, for waiver of interest under Sections. 217 and 220 of the IT Act. The case of the petitioner is that on the said application after deliberation, the CIT, Jaipur, on 29th March, 1988 sent a communication to the ITO, A -Ward, Jaipur, which is at p. 127 and which was filed along with the additional affidavit on 14th Sept., 2005 before this Court which reads as under : Office of the CIT,Jaipur.Dt. 29th March, 1988.No. J/IT/VD/220(2)/87 -88/3369The ITO,A -Ward,Jaipur.Sub : Waiver of interest charged under Sections. 217 and 220(2) and penalties - -Shri Sangram Singh Mehta, Jaipur -Asst. yr. 1966 -67. I am directed to refer your letter No. ITO/A -Ward/Dossier/87 -88/334, dt. 25th March, 1988 regarding waiver of interest and penalties in the case of Shri Sangram Singh Mehta of Jaipur for the asst. yr. 1966 -67. In view of the arrear clearance drive and the fact that the demand is very old and pertains to asst. yr. 1966 -67 and considering the proposal of ITO and the IAC's endorsement that the assessee had rendered co -operation to the Department in terms of Clause (II/III) of Sub -section (2A) of Section 220 of the IT Act, the worthy CIT has agreed to consider the proposal sympathetically for waiver of interest and penalties as per rules. You are, therefore, requested to please send the cheque to the bank immediately for collection. Formal order for waiving the interest and penalties will be passed after the cheque is cleared and the amount is collected. Sd/ - (D.P. Govil) ITO (Judl.) For CIT, Jaipur. The petitioner further contended that in view of the aforesaid, since the financial year was coming to a close on 31st March, 1988 and the cheque would not be realised before the said date, on the request of the IT authorities, the petitioner submitted a cash challan for the deposit of the amount of Rs. 49,349 on 30th March, 1988 and the same was deposited after being duly verified and authorised by the IT authorities on 30th March, 1988 itself. Thus, the case of the petitioner is that the petitioner acted on the basis of the order that was sent on 29th March, 1988 by the office of CIT, Jaipur, and was waiting for formal order for waiving of the penalty and interest as has been indicated in the said letter that these would be passed after the cheque is cleared and the amount is collected. However, no such order was passed in favour of the petitioner.
(3.) THE petitioner then submitted an application under Section 154 of the IT Act. The petitioner further moved fresh applications (Annexs. G and H) on 20th Jan., 1989 praying for withdrawing the orders dt. 3rd Jan., 1989 (Annexs. E and F) in the light of the order dt. 29th March, 1988. By the orders dt. 3rd Jan., 1989 (Annexs. E and F) the applications dt. 7th March, 1988 were rejected by the respondents. In the applications dt. 20th Jan., 1989, the petitioner referred to the order of the CIT, dt. 29th March, 1988 and prayed that the formal orders be passed and the orders dt. 3rd Jan., 1989 be set aside on various grounds as mentioned in the application.;