Surrender of income

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M.M.SURANA

M.M.SURANA (Querist)

29 March 2016 Dear Expert ! One of my client case for the AY 2013-14 was under cass scrutiny and process the case. under presuure and no confirmation was recd from the receiver of commission paid, my client seurrendred the income and taxed & filed letter in this regard and requested not to impose penalty u/s 271 ( c ). Asst is completed and pentalty waived but iterest has been charged u/s 234B. I suggested to my client to file petition u/s 119 (2) before chief Commissioner for immunity from interest . Pl advise me whether I am correct or suggest me any other way

M.M.SURANA

M.M.SURANA (Querist)

30 March 2016 Dear Experts my most of queries are un answered

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 Your suggestion to file a petition under **Section 119(2)** of the Income Tax Act before the Chief Commissioner for waiver of interest under **Section 234B** is a valid and practical approach.

### Explanation:

* **Section 234B** interest is levied for default in payment of advance tax.
* Even if income is surrendered during scrutiny and penalty is waived under **Section 271(1)(c)**, the law mandates interest on delayed payment of tax.
* However, under **Section 119(2)**, the Chief Commissioner has discretionary power to grant relief or condone delay in exceptional circumstances.

### Recommended course of action:

1. **File a detailed application under Section 119(2)** explaining:

* The voluntary surrender of income.
* No intention to evade tax.
* Penalty waived already.
* Request for waiver/condonation of interest under Section 234B on grounds of equity and hardship.

2. **Alternative options to consider:**

* **Appeal to the Commissioner (Appeals)** if applicable, citing hardship and special facts.
* Check if any case law supports waiver of interest in such voluntary surrender cases.

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### Summary:

* Your advice is appropriate.
* Filing under **Section 119(2)** is the best remedy to seek relief from interest.
* Ensure the application is well-drafted and supported with facts.

If you want, I can help draft a sample petition/application for Section 119(2). Would you like that?

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