IN THE HIGH COURT OF JUDICATURE AT MADRAS

Reserved On

14.12.2021

Pronounced On

08.04.2022

CORAM

THE HON'BLE MR.JUSTICE C.SARAVANAN

W.P.No.21058 of 2021

and

W.M.P.Nos.22319 & 22321 of 2021

(Through Video Conferencing)

Ravikumar Dhandhania ... Petitioner

Vs.

Income Tax Officer,

Ward I (4) Salem,

Room No.306, 3^rd Floor,

New Building, No.3,

Gandhi Road,

Salem - 636 007. ... Respondent

Writ Petition filed under Article 226 of the Constitution

of India, for issuance of a Writ of Certiorarified Mandamus, to

call for the records and to quash the impugned order referenced

No.C.No.9503(1)/2018-19/PCIT/SLM dated 14.02.2019 passed by the

Principal Commissioner of Income Tax , Salem as the same is

arbitrary and devoid of merit and to direct the respondent to

waive off sum of Rs.28,61,596/- (Rupees Twenty Eight Lakhs Sixty

One Thousand Five Hundred and Ninety Six only) towards interest

due on tax under Section 220(2) for the assessment year 2007-

2008.

For Petitioner : Mr.R.Lakshmi Ratan

For Respondent : Mr.A.N.R.Jayapratap

Junior Standing Counsel

O R D E R

This Writ Petition has been filed for issuance of a Writ of

Certiorarified Mandamus, to call for the records and to quash

https://hcservices.ecourts.gov.in/hcservices/

the impugned order dated 14.02.2019 bearing reference

C.No.9503(1)/2018-19/PCIT/SLM

passed

by

the

Principal

Commissioner of Income Tax, Salem and to direct the respondent

to waive off a sum of Rs.28,61,596/- towards interest due on

tax under Section 220(2) of the Income Tax Act, 1961 for the

Assessment Year 2007-2008.

2. The petitioner had filed the return on 05.03.2009 for the

Assessment Year 2007-2008 by admitting an income of

Rs.1,57,410/-. Thereafter, the petitioner appears to have

informed the Income Tax Officer that there was an inadvertent

mistake in the return and therefore, the taxable income was to

be recomputed as Rs.3,20,00,000/-, by which time, the time for

filing revised return under Section 139 of the Income Tax Act,

1961 had expired.

3. Thereafter, the petitioner was issued with a notice dated

31.03.2014 under Section 148 of the Income Tax Act, pursuant to

which, the petitioner filed revised return, wherein, the

aforesaid amount of Rs.3,20,00,000/- was included into

taxable income of the petitioner. The scrutiny was completed.

Eventually, the Assessment Order was passed by the respondent

Assessing Officer on 30.01.2015, wherein, the interest under

Sections 234A, 234B & 234C of the Income Tax Act, 1961 for the

belated payment of tax due on the revised return filed by the

petitioner was demanded. The details of the tax assessed by the

respondent are as under:-

Income originally returned

: Rs. 1,57,410/-

Income returned as per revised return: Rs.3,21,57,410/-

Income assessed

: Rs.3,21,57,410/-

Tax payable

: Rs. 95,97,223/-

Add: Surcharge @ 10%

: Rs. 9,59,722/-

Education Cess @ 2% : Rs. 2,11,139/-

Tax payable

: Rs.1,07,68,084/-

Less:

Advance Tax paid

: Rs. 5,000/-

Tax payable

: Rs.1,07,63,084/-

Add: Interest u/s 234A

: Rs. 23,67,860/-

Interest u/s 234B

: Rs.1,01,17,220/-

Interest u/s 234C

: Rs. 196/-

----------------------

Tax payable

: Rs.2,32,48,360/-

Less : Self assessment tax paid

: Rs.1,07,63,080/-

----------------------

Balance tax payable

: Rs.1,24,85,280

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4. The petitioner was also issued with a Demand Notice dated

30.01.2015 under Section 156 of the Income Tax Act, 1961,

wherein, the petitioner was called upon to pay a sum of

Rs.1,24,85,280/-. It appears that the petitioner had approached

the competent authority, namely, Chief Commissioner of Income,

Trichy for waiver of int