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SANJEEV PRAKASH SHARMA, VIKAS SURI
Baso Devi – Appellant
Versus
Central Board of Direct Taxes – Respondent
JUDGMENT
Sanjeev Prakash Sharma, J. (Oral)
The petitioners before us are legal heirs of late Megh Raj who have come in second round of litigation before this Court after the earlier writ petition filed by them resulted in the same position as it stood prior to the passing of High Court's order.
2. In the first round, the brief facts which need to be noticed are that the petitioners had preferred civil writ petition No.3537 of 2003 before this Court praying for allowing waiver of the interest amount as assessed already and charged under section 234A, 234B and 234C of the Income Tax Act, 1961 for non submission of assessment of income tax returns for the period from 1991 upto 2000. Land of Late Megh Raj, predecessor-in-interest of the petitioners measuring 33 acres and 10 marlas was acquired by Government of Haryana, vide notifications dated 07.02.1986 and 18.02.1987 and an award was passed on 27.08.1987. Compensation so awarded was enhanced by Addl. District Judge, Kurukshetra from Rs. 70,000/- to Rs. 1 lakh per acre and total compensation in the sum of Rs. 53,76,900/- was received by him, which he deposited in the banks. Megh Raj filed returns on 15.11.2000 for the assessment years 1
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.
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 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....
The interpretation of financial hardship under Section 220(2A) requires considering the entirety of the taxpayer's financial situation, not merely an isolated assessment of conditions.
Taxpayers are entitled to have their applications for waiver of interest reconsidered in light of subsequent tax payments.
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