Allowing the petition the Court held that ; Sale proceeds were deposited in a ‘No Lien’ account with bank as per direction of BIFR . Assessee could not remit tax within time as amount received from sale proceeds were lying with bank . Accordingly the rejection application for waiver of interest is held to be not justified when the interest under section 220(2) was waived by Chief Commissioner. Matter is remanded and directed the the Commissioner to pass the order on merits. ( AY.2001-02)
Travancore Sugars & Chemicals Ltd. v. Addl. CIT (2018) 258 Taxman 273 (Ker.)(HC)
S. 234B : Interest – Advance tax – Sale proceeds were deposited in a ‘No Lien’ account with bank as per direction of BIFR – Assessee could not remit tax within time as amount received from sale proceeds were lying with bank –Rejection application for waiver of interest I held to be not justified- Directed the Commissioner to pass the order on merits. [ S.220(2)]