TMI Blog2015 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the judgment of this Court dated 25.11.2011 passed in Writ Petition No.1444 of 2009. 4. However, in a nut shell it needs to be stated that a huge tax demand was created by the Income Tax Officer for the Assessment Year 1994-95, which the petitioner contested upto the Tribunal. Interest was also charged in the assessment order. After culmination of the appeal, the tax demand was reduced to ₹ 75,000/- which was paid by the petitioner on 27.9.2000. Interest was not paid. The assessing officer, after giving full effect to the appellate order reduced the demand to ₹ 75,000/- on which interest was calculated at around ₹ 4.77 lacs. The petitioner, being aggrieved by the imposition of this interest filed an application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o exercise his jurisdiction, in reducing or waving amount of interest paid or payable by the assessee. In this case the CIT, in our opinion, failed in exercise of the jurisdiction in reducing or waiving the amount of interest, which was without doubt, much larger as against the demand of tax. The writ petition is allowed. The order dated 26.2.2009 passed by the Commissioner of Income Tax, Varanasi in the matter of the petitioner for the assessment year 1994-95 under Section 220 (2) read with Section 220 (2A) of the Income Tax Act, 1961 is set aside. The Commissioner of Income Tax, Varanasi will consider the question of waiver of interest strictly in terms of conditions laid down in Section 220 (2A) on which he has recorded his finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gives a discretion to an authority to exercise its power, such authority could exercise the same in a fair manner. 8. Having heard the learned counsel for the parties, we find that the Writ Court by its order dated 25.11.2011 had remitted the matter to the Commissioner to reconsider the question of waiver of interest strictly in terms of the conditions laid down in Section 220(2A) of the Act. The Commissioner while reconsidering the matter after considering paragraphs 4.3.1 and 4.3.2 of its earlier order came to the conclusion that the ingredients provided under Section 220(2A) of the Act exists and since there was a genuine hardship for the petitioner, granted partial waiver by reducing the interest to 75%. 9. We are of the opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, 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. 13. 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/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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