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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 ..... e John J.Chackola in respect of assessment year 1994-95. Ext.P1 is the assessment order dated 28/03/2001. Petitioner, being the legal heir, was prosecuting the matter. Ext.P1 order was modified by a further order dated 17/05/2004. Petitioner remitted the amounts in monthly instalments during September 2004 to May 2008 aggregating to Rs. 26,53,624/-. Thereafter, the petitioner filed application for waiver of interest before the 1st respondent under Section 234A of the Income Tax of 1961 (hereinafter referred to as the 'IT Act') amounting to Rs. 3,75,256/- and interest under Section 234B of the Act amounting to Rs. 9,38,140/-. The 1st respondent, as per Ext.P2 order dated 21/11/2011, granted waiver of interest charged under Section 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the petitioner is that when interest is waived under Section 220(2A) of the IT Act, the entire interest charged has to be waived. In other words, there cannot be any limit in granting the waiver. 4. Learned counsel for the petitioner also placed reliance on the following judgments: i) E.M.Joseph v. Chief Commissioner of Income Tax and Others [(2012) 342 ITR 379]. In this case, the writ petition was filed challenging the action of the Commissioner of Income Tax in limiting the waiver to an amount of Rs. 24,408/- which was 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven case must be arrived at objectively and fairly and that the reduction or waiver is not a right or a matter of course whereas it has to be made on sufficient cause being made out after considering all relevant circumstances. The levy of interest being compensatory, it has to be verified whether the delay in filing the returns was on account of sufficient reasons being shown. 6. There is no doubt regarding the proposition laid down in the cases cited above. Even the learned Single Judge of this Court in 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, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never be in difficulty as he can sell those assets and pay the amount of interest levied. 22. The ingredients of genuine hardship must be determined keeping in view the dictionary meaning thereof and the legal conspectus attending thereto. For the said purpose, another well-known principle, namely, a person cannot take advantage of his own wrong, may also have to be borne in mind. The 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 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 Yada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to the circumstances beyond the control of the assessee and the assessee has co-operated with the enquiry relating 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. Rs. 11,31,040/- and did not waive the entire interest, though it was fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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