TMI Blog2022 (4) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 156 of the Act also stipulated that if the petitioner failed to pay the aforesaid amount within the period of thirty days from the date of the service of the Demand Notice, the petitioner will also be liable to pay a simple interest at 1.5% for every month or part of a month from the date commencing after the end of the period of 30 days in accordance with Section 220(2) of the Income Tax Act, 1961. The petitioner, however, failed to pay the interest in time. Instead, the petitioner filed an application under Section 220 of the Income Tax Act, to waive the interest of ₹ 1,24,85,280/-. The said application was dismissed on 28.12.2016. It is only thereafter the petitioner paid the amount quantified in the Demand Notice dated 30.01.2015 issued under Section 156 of the Act. As the petitioner failed to pay the amount in time, the petitioner is liable to pay the interest. Therefore, there is no merit in this present Writ Petition and is liable to be dismissed. - W.P.No.21058 of 2021 And W.M.P.Nos.22319 & 22321 of 2021 - - - Dated:- 8-4-2022 - Hon'ble Mr.Justice C.Saravanan For the Petitioner : Mr.R.Lakshmi Ratan For the Respondent : Mr.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Interest u/s 234A : ₹ 23,67,860/- Interest u/s 234B : ₹ 1,01,17,220/- Interest u/s 234C : ₹ 196/- Tax payable : ₹ 2,32,48,360/- Less : Self assessment tax paid : ₹ 1,07,63,080/- Balance tax payable : ₹ 1,24,85,280 4. The petitioner was also issued with a Demand Notice dated 30.01.2015 under Section 156 of the Income Tax Act, 1961, wherein, the petitioner was called upon to pay a sum of ₹ 1,24,85,280/-. It appears that the petitioner had approached the competent authority, namely, Chief Commissioner of Income, Trichy for waiver of interest under the provisions of the Income Tax Act, 1961 vide Waiver Application dated 06.04.2015. Meanwhile, the petitioner was also issued with another demand notice dated 02.08.2016 calling upon the petitioner to pay the aforesaid sum of ₹ 1,24,85,280/- which was challenged before the Madurai Bench of this Court in W.P.(MD) No.16001 of 2016. The said Writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax, Salem under Section 220(2A) of the Income Tax Act, 1961 in ITA Nos.1041/Chny/2014. The said appeal was also dismissed vide order dated 18.12.2019 with liberty to obtain an alternative remedy since the appeal was not maintainable and order under Section 220(2A) of the Income Tax Act, 1961 was not an appealable order before the Income Tax Appellate Tribunal. Subsequently, the respondent issued the impugned notice dated 24.01.2020 demanding the aforesaid sum of ₹ 28,61,596/- as interest from the petitioner. 10. The learned counsel for the petitioner submits that the petitioner is entitled for waiver of interest on interest as the petitioner has not only paid the tax determined by the respondent Assessing Officer pursuant to the notice issued under Section 148 of the Income Tax Act, 1961 but also paid the interest demanded under Section 234A, 234B 234C of the Income Tax Act, 1961 on various dates as mentioned above. 11. The learned Junior Standing Counsel for the respondent submits that the petitioner had delayed in paying the interest under Sections 234A, 234B and 234C of the Income Tax Act, 1961. It is submitted that the Demand Notice was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961 was issued is consequential. It took about three years and therefore, the impugned notice issued the respondent cannot be challenged in this Writ Petition. It is therefore submitted that the present Writ Petition is liable to be dismissed. 16. The learned Junior Standing Counsel for the respondent submits that the application for waiver of interest was rejected by the Principal Chief Commissioner of Income Tax by an order dated 28.12.2016. There was an inordinate delay in payment of the Income Tax Act and interest thereon under Sections 234A, 234B and 234C of the Income Tax Act, 1961 and the aforesaid amounts were paid only after the application was rejected by an order dated 28.12.2016. After the aforesaid amount was paid, the respondents thus issued yet another notice under Section 220(2) of the Act by calling upon the petitioner to pay a sum of ₹ 28,61,596/-. 17. It is submitted that the impugned order which has been passed pursuant to the order of this Court is well reasoned and requires no interference. It is further submitted that the petitioner has not shown that the payment of amount would have cause genuine hardship to the petitioner or any of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s detailed above. 22. The Demand Notice under Section 156 of the Act also stipulated that if the petitioner failed to pay the aforesaid amount within the period of thirty days from the date of the service of the Demand Notice, the petitioner will also be liable to pay a simple interest at 1.5% for every month or part of a month from the date commencing after the end of the period of 30 days in accordance with Section 220(2) of the Income Tax Act, 1961. 23. The petitioner, however, failed to pay the interest in time. Instead, the petitioner filed an application under Section 220 of the Income Tax Act, to waive the interest of ₹ 1,24,85,280/-. The said application was dismissed on 28.12.2016. It is only thereafter the petitioner paid the amount quantified in the Demand Notice dated 30.01.2015 issued under Section 156 of the Act. 24. As the petitioner failed to pay the amount in time, the petitioner is liable to pay the interest. Therefore, there is no merit in this present Writ Petition and is liable to be dismissed. 25. Therefore, this Writ Petition is dismissed. No cost. Consequently, connected Miscellaneous Petitions are closed. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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