The assessee filed his income voluntarily for the assessment year 1996-97 showing a sum as long-term capital gains. The claim of the assessee that it was long-term capital gains was rejected. The Assessing Officer determined the total income at Rs. 17,30,930 for the assessment year and demanded a sum of Rs. 5,46,742 as the total net tax payable. The Assessing Officer charged interest under sections\u00a0234A,\u00a0234B\u00a0and\u00a0234C\u00a0. An application for waiver of interest was rejected. On a writ petition against the order . Court held that \u00a0the assessee entertained a bona fide belief that the transaction entered into by him had yielded only long-term capital gains. But his stand was rejected by the assessing authority. The order passed by the assessing authority that the transaction yielded only short-term capital gains and not long-term capital gains had become final. The bona fide nature of the belief entertained by the assessee was wholly irrelevant. Rejection of one’s stand in a legal proceeding cannot be construed as an “unavoidable circumstance”. The case on hand clearly fell outside the scope of clause 2(e) of the notification dated May 23, 1996. The order was justified. (AY. 1996 -97)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 234A : Interest – Default in furnishing return of income – Long term capital gains – Rejection of one’s stand in a legal proceeding cannot be construed as an unavoidable circumstance- Interest cannot be waived . [S. 234B , 234C ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8181","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-27X","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=8181"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8181\/revisions"}],"predecessor-version":[{"id":8962,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8181\/revisions\/8962"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}