TMI Blog2019 (11) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 days from the date of receipt of the giving effect order. Their dispute is with regard to the interest claimed. Therefore, the petitioner filed the Waiver Petition dated 13.12.2017 under Section 220 (2A). While considering the application for waiver of interest, the first respondent should apply his mind, as to whether the petitioner has satisfied the three conditions provided under Section 220 (2A) of the said Act in order to grant waiver. Therefore, application of mind of the first respondent should be apparent on the face of the order passed under Section 220 (2A). The first respondent has passed the rejection order only on the ground that the Directors of assessee Company have given loans to the assessee and that the assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority by order dated 31.07.2017 partly allowed the appeal and reduced the tax liability. Consequent to the order passed by the Appellate Authority, the Assessing Officer through his proceedings dated 04.09.2017, passed a giving effect order, wherein and whereby, he made a demand of arrears of tax liability as ₹ 97,22,499/- and interest at ₹ 26,82,187/-. The petitioner paid the tax liability on 16.09.2017. Thereafter, the petitioner filed the Waiver Petition on 13.12.2017 under Section 220(2A) of the Income Tax Act, 1961, by contending that the assessee company is still making losses and is not financially sound to make the interest payment under Section 220 (2) as evident from the return of Income filed for the succeeding year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed all the three parameters referred to in the above said provision, the first respondent ought to have considered the application favorably and granted the waiver of interest. 5. On the other hand, the learned senior standing counsel appearing for the respondents/Revenue after reiterating the contentions raised in the counter affidavit submitted that the first respondent has rightly taken note of the fact that the Directors of the assessee Company have given loans to the assessee for making payment of Income Tax and therefore, the assessee Company could have also paid the interest of making such arrangement with the Directors. Thus, the learned counsel contended that the order of the first respondent does not require any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g their claim for waiver of interest. 9. This Court, at this stage, is not inclined to go into such contentions and express any view as of now, since this Court, is of the view that it is for the first respondent to consider and decide all those contentions afresh, as the impugned order does not reflect anywhere as to the consideration of those contentions raised by the petitioner in detail, except to state that the petitioner borrowed loan from the Directors and paid the tax and therefore, the petitioner Company could have easily made the payment of interest also, as demanded by the Department. In my considered view, while considering the application for waiver of interest, the first respondent should apply his mind, as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it the matter back to the first respondent to reconsider the matter afresh and pass orders on the merits and in accordance with law. It is also made clear that this Court, at this stage, is not expressing any view on the merits of the claim made by the petitioner for waiver of interest, as it is for the first respondent to consider and decide the same, by applying the parameters provided under Section 220 (2A) of the said Act. 12. Accordingly, this writ petition is allowed and the impugned order is set aside. Consequently, the matter is remitted back to the first respondent for passing order on merits and in accordance with law afresh, after giving due opportunity of personal hearing to the petitioner. Needless to say that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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