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TMI Blog2016 (8) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the imposition of interest causes genuine hardship to the assessee. It has also to be verified whether the default in payment of the amount was due to the circumstances beyond the control of the assessee and the assessee has cooperated with the enquiry. In Ext.P6, the Commissioner has observed that the petitioner had not complied with any of those conditions but apparently no reasons have been stated. As rightly contended by the learned counsel on behalf of the petitioner, the Hon'ble Supreme Court in B.M.Malani vs. Commissioner of Income Tax and Another [2008 (10) TMI 2 - SUPREME COURT] had clearly indicated that when an application is considered under Section 220(2A) it has to be considered in a judicious manner. The Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceedings and he is having genuine hardship to pay the amount. That apart if the liability of interest is substantial, he will not be in a position to discharge the liability as such. The petitioner has also a case that the only property belonging to him has been attached by the Income Tax Department. Unless the property is sold, the petitioner will not be in a position to pay even the principal amount. In such circumstances, according to the petitioner he is a person who is entitled for the benefit of waiver or reduction of interest as all the conditions specified under Section 220 (2A) stands complied. 3. It is submitted that the Commissioner had not considered the matter in accordance with law and therefore, the matter require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said principle, it is conceded, has not been applied by the courts below in this case, but we may take note of a few precedents operating in the field to highlight the aforementioned proposition of law. [See Priyanka Overseas (P) Ltd. v. Union of India1 (SCC at pp. 122- 23, para 39); Union of India v. Major General Madan Lal Yadav (Retd.) (SCC at p. 142, paras 28-29); Ashok Kapil v. Sana Ullah (SCC at p. 345, para 7); Sushil Kumar v. Rakesh Kumar (SCC at p. 692, para 65, first sentence); Kusheshwar Prasad Singh v. State of Bihar (SCC at pp. 451-52, paras 13-14 and 16).] 19. Thus, the said principle, in our opinion, should be applied even in a case of this nature. A statutory authority despite receipt of such a request could not have k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the discretionary jurisdiction on the part of the Commissioner. The appellant volunteered that the securities be sold. Why the said request of the appellant could not be acceded to has not been explained. It was a voluntary act on the part of the appellant. xxxxxx 4. Statement has been filed by the Standing Counsel supporting the stand taken in Ext.P6. It is stated that the petitioner had not co-operated with the proceedings and that he did not pay any amount due as tax though he had given a self declaration regarding undisputed income. So far, he had paid only an amount of ₹ 1,40,000/- though the assessment was with respect to the block period 1993-1994 to 1996-97. It is submitted that the Commissioner had considered the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... threat by the assessee and waiver of interest cannot be done by threat. I do not think that the said reason alone would justify denial of the benefit of waiver or reduction of interest. The denial of reduction or waiver of interest has to be considered in the light of the statutory provisions as enumerated in Section 220(2A). Under such circumstances, I am of the view that the matter requires reconsideration by the Commissioner. Accordingly, the writ petition is disposed of as under: Ext.P6 is set aside. The first respondent shall reconsider the matter and pass appropriate orders on Ext.P5 within a period of two months from the date of receipt of a copy of this judgment and in the light of the law relied on by the Apex Court as referr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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