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TMI Blog2016 (9) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment or any proceeding for the recovery of any amount due from him. All these three conditions have to be satisfied. On facts, it has to be verified whether these conditions have been fulfilled. In Ext.P6 order, it is found that all the conditions under Section 220(2A) for reduction or waiver of interest has been satisfied. This was a case in which payment was already made in instalments and what remained to be paid was a portion of interest. The Commissioner, having arrived at a finding, granted waiver for the balance interest payable i.e. ₹ 11,31,040/- and did not waive the entire interest, though it was found that the petitioner had satisfied all the conditions. As already indicated, statute permits reduction of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest under Section 234B of the Act amounting to ₹ 9,38,140/-. The 1st respondent, as per Ext.P2 order dated 21/11/2011, granted waiver of interest charged under Section 234A of the Act amounting to ₹ 3,75,256/-. The claim for waiver of interest under Section 234B of the Act was rejected. By Ext.P3 order dated 01/12/2011, the total amount payable was computed at ₹ 22,24,894/- inclusive of interest of ₹ 12,86,754/- under Section 220(2) of the Act. Petitioner submitted Ext.P4 representation for waiver of interest under Section 220(2) of the Act. In the meantime, petitioner was served with Ext.P5 showing the computation of amounts pursuant to Ext.P2 order. As per Ext.P5, the interest under Section 220(2) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance amount due from the deceased assessee. Perusal of the judgment indicates that the contention urged in the case is that no specific reason had been stated to limit the waiver to the amount which remained due and payable. It was held at paragraph 9 as under: 9. In the instant case, what was stated by the Chief CIT was that certain amounts were already paid by way of adjustment or otherwise and that certain amounts remained unpaid. The standing counsel for the Revenue would also contend that the waiver of interest was limited to that remaining unpaidsince the amount adjusted cannot be taken to be having been paid. The section not having made any such distinction, as found earlier, and by virtue of the amendment entitling both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.M.Joseph (supra) observed that the Section does not make any distinction by which there is any restriction imposed on the Commissioner of Income Tax to consider waiver of the interest that has been paid and unpaid. In the said case, the learned Single Judge proceeded on the basis that the discretion has not been exercised properly by the Chief Commissioner of Income Tax and therefore the matter was remitted back. 7. In Kerala State Cashew Development Corporation Ltd (supra), a Division Bench of this Court was concerned with the question when the Commissioner of Income Tax refused the prayer of the assessee for waiver of interest levied under Section 139(8) of the IT Act, 1961. It was held that when the interest under Section 139(8) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of a few precedents operating in the field to highlight the aforementioned proposition of law. See Priyanka Overseas Pvt. Ltd. and Anr. v. Union of India and Ors. 1991 Suppl. (1) SCC 102, para 39; Union of India and Ors. v. Major General Madan Lal Yadav (Retd.) MANU/SC/0355/1996 : [1996] 4 SCC 127 at 142, paragraphs 28 and 29, Ashok Kapil v. Sana Ullah (1996)6 SCC 342 at 345, paragraph 7; Sushil Kumar v. Rakesh Kumar [2003] 8 SCC 673 at 692, paragraph 65, first sentence, Kusheshwar Prasad Singh v. State of Bihar [2007] 11 SCC 447, paragraphs 13 , 14 and 16. 9. Section 220(2A) reads as under: 220. When tax payable and when assessee demand in default. xxxx (2A) Notwithstanding anything contained in sub-section (2), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a case in which payment was already made in instalments and what remained to be paid was a portion of interest. The Commissioner, having arrived at a finding, granted waiver for the balance interest payable i.e. ₹ 11,31,040/- and did not waive the entire interest, though it was found that the petitioner had satisfied all the conditions. As already indicated, statute permits reduction of interest or waiver of interest in full. This is a case in which the Commissioner has found that the interest payable can be waived thereby reducing the quantum of interest. Waiver itself is a discretion to be exercised in terms with the statute, and once such a discretion has been exercised, the scope of judicial review is very limited. I do not find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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