TMI Blog2019 (3) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between 05.02.2019 to 25.02.2019. It is their case that the tax could not be paid earlier, due to closure of Shrimp Farms, by order of the Hon'ble Supreme Court of India in the year 1996. Due to the default in payment of the tax for the assessment years 1992-1993, 1993-1994 and 1994-1995, the respondent has brought the petitioner's property being vacant plots of land measuring 126 acres 28 cents of land at Survey No.34, Pattanamardur Village, Ottapidaram Taluk, Thoothukudi District, for sale under Rule 38 and Rule 52(2) of the Second Schedule to the Income Tax Rules by a proclamation of sale, dated 20.02.2019, which is subject matter of challenge in this Writ Petition. 3. According to the petitioner the demand was made by the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndrum. According to the petitioner, till date the said application seeking for waiver of interest has not been considered by the Principal Commissioner of Income Tax, Trivandrum. But, 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, dated 20.02.2019. 5. In such circumstances, the instant writ petition has been filed challenging the proclamation of sale, dated 20.02.2019, issued by the respondent. 6. Heard Mr.B.Dhanaraj, learned counsel appearing for the petitioner and Mrs.S.Srimathy, learned Standing Counsel appearing for the respondent. 7. The relevant portion of Section 220 (2A) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration is whether the petitioner is liable to pay a sum of ₹ 1,32,93,493/- as interest as per the respondent's demand letter, dated 08.02.2019. 9. According to the petitioner's company, they are entitled 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. 10. The Discretionary power for waiver of interest is available to the Principal Commissioner of Income Tax under Section 220 (2A) of the Income Tax Act, 1961. The petitioner has submitted an application before the Principal Commissioner of Income Tax, Trivandrum, seeking waiver of interest on 05.03.2019. On receipt of the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dated 04.03.2019 filed by the petitioner on 05.03.2019 under Section 220(2A) of the Income Tax Act, 1961, before the Principal Commissioner of Income Tax, Trivandrum, vide reference C.No.343/J/PCIT/TVPM/WI-8/2018-19/1488, within a period of six months, from the date of receipt of a copy of this order. 13. With the aforesaid direction, this Writ Petition is disposed of. Consequently, connected Miscellaneous Petition is closed. 14. After passing the order, the learned Counsel for the respondent would submit that the respondent has already incurred expenses towards sale of the properties as per the proclamation, dated 20.02.2019 for which the respondent will have to be reimbursed. 15. Considering the large extent of the property, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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