On Writ the Court held that the Settlement Commission had accepted that the returns for the assessment year 1989-1990 could not be filed in time, and were delayed on account of the fact that the seized papers were not available with them. While exercising the discretion by the Settlement Commission, no reasons had been assigned as to why the interest had been reduced by 50 per cent. only, and as to why the complete interest had not been waived for the assessment year 1989-1990. The interest charged in terms of section 234A was to be waived. As regards seizure of cash during the search could not be a ground for waiver of advance tax or payment of tax for the subsequent year. The advance tax was required to be paid the interest under sections 234B and 234C was not waived.( AY. 1989-90)
Sant Lal and others. v. ITSC (2025) 477 ITR 422 (P&H)(HC) Editorial : SLP of assessee dismissed, Hari Chand an. v. ITSC (2025) 477 ITR 429 (SC)
S. 245D : Settlement Commission-Settlement of cases-Return of income-Delay in filing of return – waiver of interest-Delayed filing of return as of copies of documents seized by Department not supplied in time to assessee-Cause for delay accepted by Settlement Commission-Settlement Commission reducing interest to 50 per cent.-No reasons assigned for partial reduction of interest-Complete waiver warranted when circumstances beyond assessee’s control Income- Advance tax- Seizure of cash not related to payment of advance tax-Settlement Commission right in refusing to waive interest for default in payment of advance tax. [S.220(2), 234B, 234C, 245D(4), Art. 226]
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