9911796707
TMI Blog2011 (7) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee under the Income Tax Act. By Ext.P1 order, tax was assessed on him. The petitioner challenged the assessment in an appeal and a second appeal. Both were dismissed. During the pendency of the appeals, the petitioner had obtained conditional stay against recovery proceedings. Subsequently, the petitioner paid the entire amount due by Ext.P2. The petitioner was directed to pay interest on the defaulted tax and interest till the date of payment. The petitioner invoked the jurisdiction of the 1st respondent under Section 220(2A) of the Income Tax Act seeking waiver or reduction of the interest payable. That petition was rejected by Ext.P4 order holding that the petitioner has not satisfied the conditions in Section 220(2A) for becoming e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hree conditions mentioned in Section 220 (2A) have to be satisfied cumulatively for an assessee to claim benefit of Section 220(2A). He points out that as is evident from Exts.P3 and P4, the petitioner did not succeed in proving that payment of the tax would have caused hardship to him and that the non-payment was on account of circumstances beyond his control. On the other hand, his contention was that all his money was locked up in deposits in banks and financial institutions and if he withdraws the deposits prematurely, he would lose interest. According to the learned counsel for the Income Tax Department, that cannot operate as a circumstance beyond the control of the assessee and genuine hardship to the assessee. He had money with him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the rival contentions in detail. 7. Section 220(2A) reads thus: "220. ...... (2A) Notwithstanding anything contained in sub-section (2), the Chief Commissioner or Commissioner may reduce or waive the amount of interest paid or payable by an assessee under the said sub- section if he is satisfied that- (i) payment of such amount has caused or would cause genuine hardship to the assessee. (ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to the circumstances beyond the control of the assessee; and (iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him." As is clear from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire money received on sale of property had been invested as term deposits in banks and financial institutions. It was difficult to withdraw the deposits before the dates of maturity. ii) Due to various technical reasons, the banks and financial institutions in which the assessee had deposits, did not make tax payment directly to the Department on the basis of notices issued by Assessing Officer under section 226(3) of the Act on 16.3.2009. iii) The recovery of tax stood stayed from 19.03.2009 to 30.06.2009 by the ITAT, Kochi. It is also contended that tax payment before the stipulated date would have caused genuine hardship to him as withdrawal of term deposits before maturity would have resulted in loss of interest receipts. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss of interest on term deposits from banks, and as such was intentional. It cannot, therefore, be claimed that default in the payment of tax was due to circumstances beyond the control of the assessee. The assessee caused unnecessary hindrance to collection by applying for stay of operation of the notice of attachment under section 226(3) issued by the Assessing Officer on 16.03.2009. As such, the assessee has not co-operated with the proceedings for collection of the tax which was due from him. 5. In the light of the above facts, it is found that the conditions specified in section 220(2A) are not satisfied in this case for ordering waiver of interest charged under section 220(2) of the Act. It is settled law that all the three condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. In view of the fact that I am satisfied that condition Nos.1 and 2 have not been satisfied in the case of the petitioner, even if the contention of the petitioner regarding non-co-operation in the enquiry relating to the assessment is accepted, it will make no difference insofar as all the three conditions have to be cumulatively satisfied, I am not going into the satisfaction of the 3rd condition mentioned in Section 220(2A). Therefore, I do not find anything wrong with Ext.P4 order, by which, the Chief Commissioner of Income Tax denied the petitioner benefit under Section 220(2A). 9. As far as the other contention is concerned, I do not think that interest on interest has been charged on the petitioner. There is noting on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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