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2014 (7) TMI 49 - HC - Income TaxWaiver of interest u/s 220(2) of the Act – Interest before the date of filing of application before settlement commission u/s 245(1) of the Act - Whether the Settlement Commission was justified in granting waiver of interest levied on the assessee u/s 220(2) of the Act without considering as to whether the assessee fulfilled all the three conditions laid down u/s 220(2A) of the Act and recording reasons as to how the assessee is entitled for such waiver of interest - Held that:- There was total non-application of mind by the Settlement Commission on the crucial issue as to whether the assessee has fulfilled all the three conditions laid down under Clauses (i), (ii) and (iii) of Sub-section (2A) of Section 220 of the Act. No reasons have been recorded in the order on the entitlement of the assessee for such waiver of interest levied u/s 220(2) of the act – section 220(2) of the Act restricts the power of the Settlement Commission to reduce or waive the amount of interest paid or payable by an assessee only if such authority is satisfied that the assessee has fulfilled all the three conditions laid down u/s 220(2A) of the Act - the Settlement Commission has to exercise its discretion judicially and satisfy that the three conditions laid down under Clauses (i), (ii) and (iii) of Sub-section (2A) of Section 220 of the Act have been fulfilled, before passing an order waiving interest - Still further, such an application has to be decided by a speaking order – Relying upon Kishan Lal Versus Union of India And Others (And Other Petitions) [1998 (1) TMI 1 - SUPREME Court] –revenue is directed to consider the application filed by the second respondent u/s 220(2A) of the Act, with regard to waiver of interest levied u/s 220(2) of the Act - thus, the order of the settlement commission is set aside – Decided in favour of Revenue.
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