TMI Blog2012 (7) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ession that at the time of dissolution of the firm, all taxes payable were duly paid. The petitioner could not also trace out any documents after 17 years in respect of the assessment as well, thus payment of such amount would cause genuine hardship to the assessee insofar as the petitioner has to suffer the burden of the tax by himself - the very same circumstance prove that the default in paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng partner and the petitioner was under the impression that at the time of dissolution of the firm, all taxes payable were duly paid. The petitioner could not also trace out any documents after 17 years in respect of the assessment as well. The petitioner immediately paid the tax demanded and submitted an application under Section 220(2A) of the Income-tax Act for waiver from the interest demanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication before the Income-tax Commissioner, the petitioner had no such case. He would therefore submit that the petitioner is not entitled to waiver of interest. 4. I have considered the rival contentions in detail. 5. Section 220(2A) of the Income-tax Act Reads as follows: "(2A) Notwithstanding anything contained in sub- section (2) the Chief Commissioner or Commissioner may reduce or wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 222 of the Income-tax Act was served on the petitioner only on 27.7.2005. It is not disputed before me that the firm was dissolved in 1993. Of course, the petitioner was one of the erstwhile partners of the firm. He would submit that he was not aware of the arrears of tax insofar as the firm was being managed by the erstwhile managing partner and the petitioner is not in possession of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am satisfied that all the three ingredients of Section 220(2A) are fully satisfied in this case. That being so, the petitioner is entitled to waiver of interest under that Section. Accordingly, Ext.P6 order is quashed. It is declared that the petitioner is entitled to waiver of interest under Section 229(2A) of the Income-tax Act. Therefore, the respondents shall pass appropriate orders in tune w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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