9911796707
TMI Blog2012 (5) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... he total demand raised contained interest under sections 234A, 234B and 234C coming to Rs. 14,61,916 which was waived by an order dated October 21, 1999, by the Chief Commissioner of Income-tax. The application which is the subject-matter of the above writ petition was to waive the interest of Rs. 1,95,570 levied under section 220(2A) of the Income-tax Act. 3. The Chief Commissioner, the first respondent, passed detailed order by exhibit P5 limiting interest levied to the amount already paid and directing waiver of the balance amount remaining unpaid. In exhibit P5 order of the Commissioner has elaborately considered the scope of section 220(2A) of the Income-tax Act and found that all the three conditions regarding genuine hardship to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distinction and the manner in which the Revenue recovers the amounts, in my opinion, is not relevant while considering the waiver application made under section 220(2A). What has gone to the coffers of the Revenue is to be considered payment by the assessee but subject to the three conditions. 5. Section 220(2A), for consideration of the waiver application to reduce or waive the amount, postulates three situations or conditions which are : 1. that there was genuine hardship which the payment of such amount has caused or would cause. 2. that the default in the payment of tax was due to the circumstances beyond the control of the assessee ; and 3. that the assessee co-operated in the enquiry relating to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; 7. The standing counsel for the Revenue would rely on Smt. Harbans Kaur v. CWT [1997] 224 ITR 418 (SC) to contend that in interpreting section 18B of the Wealth-tax Act, Supreme Court has held that (page 420) : "In exercise of that discretion, the Commissioner can either reduce the amount of the penalty or he may even waive the entire penalty. It is for the Commissioner to decide on the facts of a particular case whether a waiver in entirety or a reduction alone is warranted." 8. I am in respectful agreement with the said proposition and section 220(2A) also confers the discretion on the Commissioner to waive the interest in its entirety or reduce the amount. However, I notice that the hon'ble Supreme Court dismissed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason of total and glaring absence of reasons and not on the ground of waiver of entire penalty imposed. Further, while considering the scope of waiver contemplated by section 139(8) of the Income-tax Act the Division Bench of this court also held (page 529) : "This power, no doubt, should be exercised judiciously and fairly, keeping in mind factors relevant to the issue and eschewing irrelevant factors and circumstances, to be inferred from the policy of the law itself." 10. The judicious exercise of power of waiver, I am afraid, is conspicuously absent in the above case. It would have been a different situation if the Commissioner had considered the hardship on the facts involved and reduced the interest liability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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