9911796707
TMI Blog2021 (12) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Respondent No.2 purporting to reduce the interest levied under Section 220(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The assessment year relevant for the purpose of Appeal is A.Y. 1989-90. 3. The return of income was filed by Respondent No. 1 in respect of the aforesaid assessment year on 11/10/1990, declaring a total income of Rs. 1,14,75,526/-. Assessment order dated 31/03/1992 was passed under Section 143(3), assessing total income at Rs. 10,31,23,618/-. Notice of demand was served upon Respondent No. 1 on 31/03/1992 together with the assessment order under Section 143(3). 4. On an application made by Respondent No.1, the assessment order under Section 154 of the Act was rectified on 27/07/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said order was silent on the point of charging interest under Section 220(2), it should be considered to have been waived. 9. By order dated 05/06/1998, Respondent No.2 inter-alia held that it did not consider it to be a good case for waiver of interest chargeable under Section 220(2). However, regarding the method of charging of interest u/s.220(2), Respondent No.2 directed the A.O. to take the income as determined by him in his order dated 27/07/1992, adjust it in accordance with the order of the Commission u/s.245D(4) but without withdrawing the benefit of set off of brought forward investment allowance. 10. Petitioners, therefore, moved Miscellaneous Application on 11/06/1999 inter-alia stating therein that Respondent No.2 having held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest payable is required to be reduced accordingly. 16. We have considered the submissions and the documents on record, including Judgment of ITAT dated 18/07/2002 in ITA No.5416/BOM/95 to ITA No.5419/BOM/95. 17. For determination of the issue involved, it is necessary to consider Section 220(2) of the said Act, which reads thus :- "(220)(2) If the amount specified in any notice of demand under section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly, the Assessee needs to be given the benefit of reduction in interest resulting in reduced payment of interest. 19. In the facts of the present case, CIT(A)(VI), Bombay, by order dated 30/03/1995, directed the Assessing Officer to withdraw the investment allowance granted under Section 32A of the Act. Accordingly, demand notice under Section 156 of the Act came to be issued to Respondent No.1. The said amount of interest on investment allowance under Section 32A was directed to be waived by order dated 05/06/1998 by the Settlement Commission. Petitioners therefore filed an application for recalling the order dated 05/06/1998, which by the impugned order was rejected. 20. Therefore, the issue involved in the present Petition is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionary relief to the applicant. Furthermore this court exercised its discretionary jurisdiction under Article 136 of the Constitution of India which need not be exercised in a case where the impugned judgment is found to be erroneous if by reason thereof substantial justice is being done. (See S.D.S. Shipping Pvt. Ltd. v. Jay Container Services Co. (P) Ltd.). Such a relief can be denied, inter alia, when it would be opposed to public policy or in a case where quashing of an illegal order would revive another illegal one. This Court also in exercise of its jurisdiction under Article 142 of the Constitution of India is entitled to pass such order which will be complete justice to the parties." 24. It is well settled when the technicality and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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