Dismissing the petition, the court held that ; the interest levied giving effect to capital gains based on receipt of compensation for the land acquired would not absolve the assessee from paying tax on capital gains. Further, the circular relied on by the assessee was only a guideline and it had no overriding effect on the statutory provision. The Chief Commissioner had rightly rejected the assessee’s request for waiver of interest.
C. V. Jayachandran v. CIT (2018) 401 ITR 484 (Ker) (HC)
S. 234A : Interest – Default in furnishing return of income – Waiver – Capital gains – Circular only guideline having no overriding effect on statutory provision — Rejection of application for waiver of interest by Chief Commissioner was held to be proper . [ S. 45, 119 (2) , 143(1) (a) ]