Pradeep Mehta and Rajni Shahlot and Ekta Garg and Sweta Mehta V. Chief Commissioner of Income Tax and Assistant Commissioner of Income Tax, Centralized Processing Centre (Cpc) and Assistant Commissioner of Income Tax Circle-3

CW/6899/2014

AI Insights

The case involves a writ petition filed by the legal representatives of Shri Padam Chand Mehta, who challenged the rejection of their application for waiver of interest under Sections 234B and 234C of the Income Tax Act, 1961. The petitioners argued that the rejection was done in a mechanical manner without convincing reasons. The court found that the Chief Commissioner of Income Tax did not provide adequate reasoning for the rejection and remanded the case for a fresh decision, emphasizing the need for a reasoned order and an opportunity for the petitioners to be heard.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 676605 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 19-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K K BISSA; H G CHANDA
• Assessee Lawyers: SHARAD KOTHARI
• Keywords: Advance tax; Assessment Order; Income Tax Return; Speculation business; Waiver of interest
• Section: 119; 234B; 234C

Judgement Text

"[2023:RJ-JD:44606-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 6899/2014 Padam Chand Mehta, through LRs (P/1/1) Pradeep Mehta S/o Late Sh. Padam Chand Mehta, Aged About 60 Years, R/o O-12, Haridwar, Evershine Nagar, Malad (W), Mumbai-064 (P/1/2) Rajni Shahlot D/o Late Sh. Padam Chand Mehta, W/o Late Sh. Sudhir Shahlot, Aged About 56 Years, R/o Indradhanu Appartments, Fifth Floor, 188 Shivaji Nagar, Cement Road, Nagpur- 010 (P/1/3) Ekta Garg D/o Late Sh. Padam Chand Mehta, W/o Sh. Shailesh Garg, Aged About 50 Years, R/o A-103, Swati Crimson, Opposite Dwarkesh Greens, Near Venetion Villa, Shailaj, Ahmedabad 059 (Guj.). (P/1/4) Sweta Mehta D/o Late Sh. Padam Chand Mehta, W/o Shri Jitendra Mehta, Aged About 47 Years, R/o Plot No. 116, Ward 10-A, Opposite Iffco Colony, Gandhidham, Kutch 201 (Guj.). ----Petitioners Versus 1. Chief Commissioner of Income Tax Aaykar-Bhawan, Paota C Road Jodhpur 2. 3. Assistant Commissioner of Income Tax, Centralized Processing Centre (Cpc), Income Tax Department Electronic City Post Office, Post Bag No. 2 Banglore, District Karnataka. Assistant Commissioner of Income Tax Circle-3 Aaykar-Bhawan, Paota C Road Jodhpur ----Respondents [2023:RJ-JD:44606-DB] (2 of 4) [CW-6899/2014] For Petitioner(s) : Mr. Sharad Kothari For Respondent(s) : Mr. K.K. Bissa Mr. H.G. Chanda HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE DR. JUSTICE NUPUR BHATI Judgment / Order 19/12/2023 This writ petition is filed by Shri Padam Chand Mehta (assessee) being aggrieved with the order dated 31.3.2014 passed by the Chief Commissioner of Income Tax, Jodhpur, whereby his application seeking waiver of interest under Section 234B and 234C of the Income Tax Act, 1961 (for short ‘the Act of 1961’) has been rejected. During pendency of the writ petition, Sh. Mehta expired and his legal representatives were taken on record. The facts, which are not in dispute, are that late Sh. Mehta was earning mainly out of speculation business of gwar-dal and was regularly paying tax by filing income tax returns. For the financial year 2011-12, late Sh. Mehta has filed income tax return and has also paid advance tax in the months of September and December, 2011. He has also paid the last installment of advance tax in March, 2012 before the due date of deposition of third installment of advance tax. Sh. Mehta has filed his return of income tax for assessment year 2012-13 (financial year 2011-12) declaring income of Rs.13,34,22,780/- and paid Rs.4,06,71,161/- as income tax. [2023:RJ-JD:44606-DB] (3 of 4) [CW-6899/2014] The Assistant Commissioner, Central Processing Centre, Bangalore has duly assessed the return of income of Sh. Mehta and imposed interest under Section 234B and 234C of the Act of 1961 vide assessment order dated 3.1.2013. Being aggrieved with the same, Sh. Mehta has filed an application on 4.3.2013 seeking waiver of interest as per the Notification issued by the Central Board of Direct Taxes from time to time while exercising powers available to it under Section 119 of the Act of 1961. The said application came to be dismissed vide order impugned. Hence, this writ petition. The main contention of learned counsel for the petitioners is that the Chief Commissioner of Income Tax has not exercised the powers of waiver of interest vested in him judiciously and has rejected the application of the petitioner for waiver of interest under Section 234B and 234C of the Act of 1961 in a mechanical manner by not giving convincing reasons. Several other grounds have also been raised by the petitioners in this writ petition. Having gone through the application filed by Sh. Mehta seeking waiver of interest under Section 234B and 234C of the Act of 1961 and the impugned order passed by the Chief Commissioner of Income Tax, Jodhpur dated 31.3.2014, we are of the view that the aforesaid application is decided in a mechanical manner without giving any convincing reason. Learned counsel for the respondents has frankly admitted that the reasons supplied by the Chief Commissioner of Income Tax for rejecting the application filed by Sh. Mehta seeking waiver of interest under Section 234B and 234C of the Act of 1961 are not convincing. [2023:RJ-JD:44606-DB] (4 of 4) [CW-6899/2014] In such circumstances, without going into the merits of the case, we deem it appropriate to set aside the order dated 31.3.2014 (Annex./14) passed by the Chief Commissioner of Income Tax, Jodhpur and remanding the matter back to it for reconsideration of the application filed by Sh. Mehta seeking waiver of interest under Section 234B and 234C of the Act of 1961. Needless to say, before passing a final order on the said application, the authority concerned shall provide sufficient opportunity of hearing to the petitioners. The petitioners are free to raise all the available grounds before the Chief Commissioner of Income Tax, Jodhpur including the grounds raised in the writ petition. The Chief Commissioner of Income Tax, Jodhpur, after considering all the grounds raised by the petitioners, shall pass a fresh order on the application filed by Sh. Mehta seeking waiver of interest under Section 234B and 234C of the Act of 1961 by a reasoned and speaking order within a period of three months from the date, the petitioners appear before it. The petitioners are directed to appear before the Chief Commissioner of Income Tax, Jodhpur on 22.1.2024. With these observations, this writ petition is disposed of. (DR. NUPUR BHATI),J (VIJAY BISHNOI),J 35 – ms rathore "