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G. S. KULKARNI, ADVAIT M. SETHNA
Grasim Industries Limited – Appellant
Versus
Chief Commissioner of Income Tax (Central) – Respondent
JUDGMENT :
Advait M. Sethna, J.
1. Rule, made returnable forthwith. Respondents waive service. By consent of the parties, the petition is heard finally.
2. This petition is filed under Article 226 of the Constitution of India. Briefly, the petition challenges an order dated 30th March 2024 passed by respondent No.1 (“impugned order” for short). By the said order, the application filed by the petitioner dated 9th November 2022 seeking waiver of interest charged under Section 234C of the Income Tax Act, 1961 (“Income Tax Act” for short) for the Assessment Year 2021-22 (“A. Y. Year 2021-22” for short) stood rejected. The reliefs/prayers in the petition are set out at pages 52 to 54 in para 12 thereof. The substantive relief/prayer is to quash and set aside the impugned order passed by respondent No.1 and to grant waiver of interest for an amount of Rs.3,88,59,353/- charged under Section 234C of the Income Tax Act. Such is the limited issue for consideration before us.
A. Factual Matrix:-
3. The relevant facts need to be set out:-
The petitioner filed its return of income on 11th March 2022 for the A. Y. Year 2021-22, declaring income at Rs.3,65,12,48,710/- with book profits at Rs.11,57,63,4
The court emphasized the necessity for a reasoned order addressing all material contentions raised by the petitioner, particularly regarding the impact of the COVID-19 pandemic on estimating income f....
A party's financial hardship does not justify a waiver of statutory interest under the Income Tax Act, which demands adherence to specific CBDT criteria for such waivers.
The court established that old age and illiteracy are significant factors for considering waiver of interest under the Income Tax Act, emphasizing the need for fair assessment in tax matters.
The main legal point established in the judgment is that the petitioner was entitled to interest on the amount paid under Section 220(2) of the Act as part of the refund under Section 240 of the Act.....
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