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2014 (12) TMI 106 - MADRAS HIGH COURTWaiver of interest u/s 220(2A) - Whether the assessee is entitled to waiver of interest, which has been levied by the Department for belated payment of the income tax dues – Held that:- The assessment was completed, for the AYs 1977-78 and 1978-79, when the assessee's father was alive – the petitioner was a partner of the firm, though at the time when he was admitted as a partner, he was a minor - the petitioner co-operated with the Department and did not contest the matter, but sought for information, such as copy of the assessment order, etc. - This was not furnished, despite the petitioner's pointing out that the matter has been racked up, after a period of 27 years - the petitioner sought for waiver of the demand on interest, for the subsequent period, i.e., January 1990 to October 2005. In B.M. Malani v. CIT [2008 (10) TMI 2 - SUPREME COURT] it has been held the genuine hardship inter-alia means a genuine difficulty, that per se would not lead to the conclusion that a person having large assets would never be in difficulty as he can sell those assets and pay the amount of interest levied - when the Department, for the first time issued the demand on the petitioner in the year 2005, the petitioner did not contest the demand, though he submitted representations requesting for furnishing of details - the tax and interest up to that date (January 1990) was paid in the year 2005 - the revenue have not placed any material to show that as to why no action was initiated for 27 years - the relevant date for considering the genuine hardship was also not taken into consideration - the question of demanding interest for the period up to 2005 does not arise - the petitioner paid the tax and interest only in October 2005 – as per section 220(2A), the authorities are empowered to reduce or waive the interest amount - thus, the revenue is directed to reduce the amount of interest at ₹ 25,000 – decided partly in favour of assessee.
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