Department Can't Deny Grant For Waiver Of Interest U/S 234C Of IT Act Without Disposing Of Issues Flagged By Taxpayer: Bombay High Court

The Bombay High Court ruled that the Chief Commissioner of Income Tax must address issues flagged by taxpayers when considering waiver of interest under Section 234C of the Income Tax Act. The case involved Grasim Industries, which sought waiver of interest due to the COVID-19 pandemic’s impact on its financials. The court found that the Chief Commissioner showed non-application of mind by not considering the pandemic’s impact on the taxpayer’s ability to estimate income and pay advance tax. The court quashed the impugned order and remanded the case for de-novo consideration, emphasizing the need for fair assessment of taxpayers’ contentions in waiver applications.