9911796707
TMI Blog2013 (5) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... a non obstante clause to say that even if Section 220 (2) of the Act is mandatory in nature, yet the Chief Commissioner or Commissioner have the power to reduce or waive the amount of interest paid or payable by an assessee if there exist the circumstances enumerated in the provision. Since the existence of circumstances which may justify reduction or waiving off the interest liability is a question of fact and this aspect has not been discussed in the impugned order by the Commissioner of Income Tax (Central), Ludhaina, we are of the considered view that the findings to the extent is contrary to the Statute as sub-section (2A) of Section 220 of the Act which came into force w.e.f. 1.10.1984 expressly vests such power with the Chief Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The order passed by the Settlement Commission is under challenge at the instance of the Assessee in CWP No. 19267 of 1996, though it is stated that out of the assessed amount, a sum of Rs. 52,94,770/- has since been deposited. 3. While the seized articles including the jewellery were in possession of the Department, an unfortunate dispute cropped up between the two partner-brothers of the Assessee, as to whether the jewellery belonged to the Assessee or one of its partners. It was in relation to that controversy that this Court in CWP No. 5400 of 2009, filed at the instance of the Assessee passed order dated 10.12.2010 (Annexure P-3) whereby the order dated 16.3.2009, of the Commissioner of Income Tax (Central), Ludhiana, entrusting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n two months from the date of receipt of copy of this order. 4. It was in compliance to the above reproduced directions that the Commissioner of Income Tax (Central), Ludhiana, has passed the impugned order dated 11.3.2011 (Annexure P-4) holding that the entire jewellery belongs to Sh. S.C. Mittal . The Commissioner has also held that the Assessee is liable to levy of interest under Section 220 (2) of the Act and in the absence of any discretion to reduce or waive off that interest, the Assessee is liable to pay interest to the tune of Rs. 82,78,452/-. 5. While the Assessee is aggrieved by the impugned order to the extent of imposition of interest liability, one of the partners of the Assessee in the connected writ petition impugns th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct which reads as follows:- (2A) Notwithstanding anything contained in subsection (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 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. 10. It may be seen that sub-section (2A) of Section 220 of the Act opens up wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disposal of the jewellery as per the agreed terms is concerned, we direct (i) the Commissioner of Income Tax (Central), Ludhiana, shall dispose of the jewellery by way of public auction and/or by following the procedure as may be expressly prescribed under the Act/circulars of the Department; (ii) he shall send an advance notice to the Assessee and its partners Shri S.C. Mittal and Pawan Kumar Mittal, intimating the date of public auction or any other mode of disposal of the jewellery, in accordance with law; (iii) the partners shall be at liberty to bring a customer, who is willing to pay the higher price than the offer received by the Commissioner in the public auction provided that the bidder brought by the partners is willing to dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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