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2019 (3) TMI 1269 - MADRAS HIGH COURTRecovery of dues - Waiver of interest before the Principal Commissioner of Income Tax u/s 220(2A) - recovery proceedings - Default in payment of tax - proclamation of sale - demand for the payment of tax as well as interest - without waiting for the outcome of the waiver of interest application, the respondent is proceeding with the sale of the petitioner's property as per the impugned proclamation of sale - entitlement for waiver in view of the closure of their business pursuant to orders passed by the Hon'ble Supreme Court as well as due to the appeal filed by the Department in respect of depreciation - petitioner has paid the entire tax liability - HELD THAT:- In the instant case, the tax liability as per the respondent's demand is ₹ 53,78,316/-, which has already been duly paid by the petitioner. Whereas the interest component is an exorbitant figure of ₹ 1,32,93,493/-. Considering the exorbitant interest demanded by the respondent, before the first respondent, this Court is of the considered view that before passing any final order in the application filed by the petitioner, under Section 220 (2A) the properties belonging to the petitioner as per proclamation of sale, dated 20.02.2019, issued by the respondent cannot be brought for sale as it will violate the principles of natural justice. The purpose of a statutory power given to any assessee to seek waiver of interest will be defeated, if the respondent is allowed to bring the property for sale, even before the outcome of the proceedings under Section 220 (2A) of the Income Tax Act, 1961 and it will defeat the objects of Section 220(2A). For the foregoing reasons, this Court quashes the impugned proclamation of sale, dated 20.02.2019 issued by the respondent. Court directs the Principal Commissioner of Income Tax-I, Cochin, to dispose of the application filed by the petitioner under Section 220(2A) of the Income Tax Act, 1961, before the Principal Commissioner of Income Tax, Trivandrum.
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