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2016 (9) TMI 160 - KERALA HIGH COURTWaiver of interest u/s 220 - discretionary power - Held that:- There is no doubt about the proposition that the interest being charged is compensatory in nature. The power given under sub Section (2A) of Section 220 is to reduce or to waive the interest paid or payable. The reasons to reduce or waive interest, should be either the payment of such amount has caused or would cause genuine hardship, whether the default in payment of the amount on which interest has been paid or was payable was due to the circumstances beyond the control of the assessee and the assessee has co-operated with the enquiry relating to the assessment or any proceeding for the recovery of any amount due from him. All these three conditions have to be satisfied. On facts, it has to be verified whether these conditions have been fulfilled. In Ext.P6 order, it is found that all the conditions under Section 220(2A) for reduction or waiver of interest has been satisfied. This was a case in which payment was already made in instalments and what remained to be paid was a portion of interest. The Commissioner, having arrived at a finding, granted waiver for the balance interest payable i.e. ₹ 11,31,040/- and did not waive the entire interest, though it was found that the petitioner had satisfied all the conditions. As already indicated, statute permits reduction of interest or waiver of interest in full. This is a case in which the Commissioner has found that the interest payable can be waived thereby reducing the quantum of interest. Waiver itself is a discretion to be exercised in terms with the statute, and once such a discretion has been exercised, the scope of judicial review is very limited.
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