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2013 (2) TMI 453 - HC - Income TaxWaiver of interest u/s 220(2) Whether partial relief is allowed or not Assessee sold land AO computed tax and raised the demand Arrears of tax was deposited by assessee - After making payment assessee made an application under section 220(2A), for waiver of interest demanded under section 220(2) Held that:- It is clear from section 220(2A), that the Commissioner or the Chief Commissioner need not always waive amount of interest in full but can grant waiver or reduction partially Relief to be granted under section 220(2A) should be proportionate to the extent of satisfaction of the conditions stated therein - section 220(2A) is an incentive to defaulter-assessee to co-operate with the Department and to remit the tax voluntarily at the earliest and, therefore, compliance should be rewarded by taking a liberal view and approach. In this case all the three conditions were to some extent satisfied, and the refusal of the Chief Commissioner to grant reduction in interest is not justified Therefore assessee is entitled to partial relief - AO was directed to grant reduction of interest by 25 per cent.
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