Surrender of income

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M.M.SURANA

M.M.SURANA (Querist)
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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)
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30 March 2016 Dear Experts my most of queries are un answered

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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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