2007 (11) TMI 283 - HC - Income Tax

Petitioner request for relief u/s 220(2A), that is for waiver of interest payable on the delayed payment of tax demanded pursuant to a notice issued under section 156 of the Act and for defaulting in payment of tax beyond the permitted period Commissioner rejecting the request showing non co-operation of assessee with department for concluding the assessment held that assessee had non bona fides to claim the benefit of waiver of interest u/s 220(2A)

Summary

Issues:
1. Rejection of request for extending relief under section 220(2A) of the Income-tax Act.
2. Commissioner not extending the relief of waiver of levy of interest due to delayed payment of tax liability.

Analysis:
1. The petitioner, an assessee under the Income-tax Act, challenged the Chief Commissioner of Income-tax's order rejecting the request for extending relief under section 220(2A) of the Act. This provision allows an assessee to seek waiver of interest on delayed tax payment demanded under section 156 of the Act. The petitioner had not filed returns on time for certain assessment years, leading to the issuance of notices under section 148. After assessments and appeals, the petitioner sought waiver of interest, claiming fulfillment of requirements under section 220(2A).

2. The writ petition focused on the Commissioner's refusal to extend the relief of interest waiver for delayed tax payment. The petitioner argued that all essential requirements for claiming the benefit under section 220(2A) were met. The petitioner's counsel contended that the Commissioner failed to acknowledge the fulfillment of these requirements, as outlined in the Act. The petitioner sought relief based on genuine hardship, circumstances beyond control, and cooperation in inquiries related to assessment.

3. The petitioner's counsel challenged the impugned order for denying the benefit, claiming it lacked awareness and was not a speaking order. Referring to a decision of the Madras High Court, the petitioner argued that approaching the court through writ jurisdiction was the only recourse. However, upon review, it was found that the Commissioner had considered the requirements and noted the petitioner's lack of cooperation with the Department in assessments.

4. Despite the petitioner's arguments against the Commissioner's findings, the court observed that the petitioner's failure to file returns on time and the necessity of a notice under section 148 indicated a lack of cooperation with the Department. The court concluded that there were no grounds for the petitioner to claim the benefit under section 220(2A) of the Act. The writ petition was dismissed, upholding the Commissioner's decision.

In summary, the court upheld the Commissioner's decision to reject the petitioner's request for interest waiver under section 220(2A) of the Income-tax Act, citing the petitioner's lack of cooperation with the Department as a key factor in denying the relief. The court found no merit in the petitioner's arguments and dismissed the writ petition.