9911796707
TMI Blog2013 (2) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the Revenue. The facts leading to the controversy are the following. During the previous year relevant for the assessment year 2006-07, the assessee sold land for above Rs. 11 crores and deposited most of the sale proceeds in term deposits in the banks. Even though the assessee contested his liability for tax on the capital gains, the Assessing Officer computed tax on capital gains and raised a total demand of Rs. 2,17,73,630. As a result of the assessment and notice of demand issued, the tax fell due in January, 2009. The assessee's first appeal against the assessment before the Assessing Officer was unsuccessful. During pendency of the second appeal, the Department initiated garnishee proceedings and issued notice to the bank unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the three conditions as provided under section 220(2A) inasmuch as he had made payments voluntarily and in terms of the conditional stay orders and within six months from the due date for payment the entire tax was paid. Since the assessee has made full payments voluntarily without the Department taking any serious steps for recovery, we feel the asses- see's case requires close examination. Conditions for waiver as contained in section 220(2A) are as follows : "(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted tax at source from the interest and paid to the Department. If the assessee had on due dates withdrawn the term deposits and remitted the entire tax amount, the assessee would not have earned interest on which tax is levied and recovered by the Department. This is a matter which certainly calls for consideration by the Chief Commissioner because, in our view, the assessee is entitled to waiver of interest at least to the extent of tax paid on interest. Besides the above, we are also unable to uphold the findings of the Chief Commissioner that the stay obtained against the recovery proceedings initiated under section 226(3) of the Act should be treated as lack of co-operation from the assessee in collection of tax. Right to move f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner to grant reduction in interest is not justified. What is clear from section 220(2A) is that the Commissioner or the Chief Commissioner need not always waive amount of interest in full but can grant waiver or reduction partially. What is indicated by the provision is that relief to be granted under section 220(2A) should be proportionate to the extent of satisfaction of the conditions stated therein. In other words, if the conditions are partially satisfied the assessee should be given partial relief, i.e., partial waiver which should be in proportion to the extent of satisfaction of the conditions. In our view, section 220(2A) is an incentive to defaulter-assessees to co-operate with the Department and to remit the tax voluntari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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