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2015 (12) TMI 113 - HC - Income TaxReduction of interest payable under Section 220(2) to 25% - entitlement for complete waiver of the interest - Held that:- In the facts and circumstances, the authority had applied its mind to the situation while granting 75% waiver of the interest. It is not correct to state that the Commissioner did not apply its mind though we do find that proper reasoning has not been given. However, by not giving such proper reasoning it does not mean that the order is incorrect or is liable to be set aside. We are of the opinion, that a finality should be reached and the matter should be laid at rest. The petitioner has been litigating for almost 20 years and the matter should come to an end once and for all. The contention that complete waiver of interest should be granted cannot be accepted. Admittedly, the enhanced income was found to be valid to a certain extent and the contention of the assessee was not accepted. A demand of ₹ 75,000/- was eventually accepted by the petitioner which was paid. Consequently, interest was liable to be paid under Section 220(2) of the Act. Considering the peculiar facts and circumstances of the present case, we find that the original demand was reduced to ₹ 75,000/-. However, the interest component under Section 220(2) of the Act has swelled to ₹ 4.77 lacs. According to the learned counsel for the petitioner, the interest as on date would be ₹ 1,19,353/- as per the impugned order. We find that for the assessment year 2008-09 the petitioner's total salary was ₹ 1,40,400/-. Considering the aforesaid, we are of the opinion that directing the petitioner to pay ₹ 1,19,353/- would entail undue hardship to him. Considering the peculiar facts and circumstances in the given case, we are of the opinion, that in the interest of justice, the demand of interest should not exceed the demand of ₹ 75,000/- - Decided partly in favour of assessee.
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