9911796707
TMI Blog1998 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax, Special Range, Ranchi, dated September 11, 1991, calculating the interest allegedly chargeable under section 220(2) of the Act at Rs. 65,70,873. Copies of the said two orders are annexures 8 and 9 to the writ petition. The facts of the case, as stated in the writ petition, may briefly be set out as follows. For the assessment year 1987-88 to which the dispute relates, the petitioner filed its return of income on August 27, 1987, declaring a total income of Rs. 11,81,96,860. On February 9, 1990, a revised return was filed declaring an income of Rs. 11,21,56,700. According to the petitioner, the income-tax payable on the returned income had been paid before filing the return and no income-tax remained outstanding. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner paid a sum of Rs. 1,04,72,382. According to the petitioner, during the intervening period it had been allowed revised refunds of Rs. 1,02,38,087 for the assessment year 1990-91 and Rs. 1,75,00,770 for the assessment year 1989-90 which were adjusted, respectively, on January 29, 1991, and March 28, 1991. The payment of Rs. 1,04,72,382 on March 25, 1991, thus amounted to a full satisfaction of the demand in the following manner : Rs. "1. Refund for the asst. yr. 1990-91 adjusted on 29th Jan., 1991 1,02,38,087 2. Refund for the asst. yr. 1989-90 adjusted on 28th March, 1991 1,75,00,770 3. Actual payment made by assessee on 25th Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same facts and circumstances, he ought to have allowed waiver of interest payable under section 220(2) as well. I do not find any substance in this contention. Section 215 of the Act provides for interest payable by the assessee where, in any financial year, the assessee has paid advance tax under section 209A or section 212 on the basis of his own estimate (or revised estimate), and the advance tax so paid is less than 75 per cent. of the assessed tax (where the assessee is a company the advance tax so paid should be less than 83-1/3 per cent. of the assessed tax). Section 220(2) of the Act, on the other hand, contemplates the stage after the income-tax liability has already been determined and notice of demand under section 156 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hief 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." It would appear that the above sub-section which begins with a non-obstante clause is a self-contained provision. It overrides the charging provision as contained in sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any view of the matter, the Commissioner has recorded a finding of fact that the petitioner has failed to establish the ground that the default of payment was due to circumstances beyond its control. The finding being in the nature of finding of fact cannot be interfered with by this court in writ jurisdiction. The submissions aforesaid as propositions of law are well founded. Mr. Debi Prasad, however, agreed that the conditions laid down in sub-section (2A) of section 220 for allowing waiver or reduction of interest are meant for the Chief Commissioner/Commissioner of Income-tax, and they do not create any fetter on the power of this court in passing an appropriate order in the facts and circumstances of the particular case and on a grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout doing so and depriving him of the benefits in this regard, it may not be proper on the part of the respondent-authorities to deny him the benefit of reduction of the amount of interest. Since this and other related aspects of the matter have not been gone into by the Commissioner of Income tax (and, perhaps, could not have been gone into by him within the parameters of section 220(2A)), it would be in the ends of justice to direct him to consider the matter afresh and pass an appropriate order. I would accordingly direct the Commissioner of Income-tax, Ranchi, to consider the matter afresh in the light of the discussions made herein above and pass an appropriate order after giving an opportunity of hearing to the petitioner in accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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