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234b interest waiver

CA Ajay (CA) (97 Points)

10 September 2014

Dear all:
Assessee an individual, earlier residing in Kashmir. Due to volatile situation in Kashmir Valley he filed ITR for AY 2007-08 late i.e. in FY 2008-09. Due to weak financial position Tax amount of approx 24 lacs paid in installment spread over next 10 years. Now AO asking for another 22 lacs for interest u/s 234B. The client is mentally & physically not well. Again financial condition is also bad. Can he get waiver of interest u/s 234B on ground of financial hardship or can he file any mercy petition to waiver of interest. Chief CIT (i.e AO) already declined waiver of interest request.
What remedy available ?

Pls answer, with reference to Case Laws if any.

CA Ajay Salagare, Pune

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1 Replies

Z ( ) (2965 Points)
Replied 10 September 2014

Its a really difficult to get waiver when Chief CIT has already passed rejection order declining the waiver of interest.

What remedy is available? Well, not any which has been provided by the Act

If you have reasonable believe that waiver should be granted then you can file writ petition in High court.

[ One person did tried to take the matter to the court,via writ, CLAIMING that the issue was of waiver/refund & same had been declined by misinterpritation/narrow interpretation of that circular. Which is absolutely wrong and so he lost. He even tried SLP but that was also rejected]

If, you'll be opting for writ petition, then draft it carefully.You have to claim that waiver should have been granted having regards to the circumstances, but Chief CIT did not considered the situation/the financial hardships of assessee properly and rejection order was passed