9911796707
TMI Blog1996 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,29,276 which formed part of the estate of the deceased, were sold for a total consideration of Rs. 52,84,710. The sale of equity shares resulted in a long-term capital gain of Rs. 51,55,434 and after claiming certain statutory deductions a return of net income at Rs. 34,55,150 was filed by the petitioner for asst. yr. 1981-82. It is said that a sum of Rs. 17,945 under the self-assessment was also deposited in respect of the returned income aforesaid. In doing so, the petitioner claims that he adjusted an amount of Rs. 20,19,108 from the tax liability on the said returned income, allegedly on the belief that the petitioner was entitled to refund of that amount from the Asstt. CED, Bombay under s. 50B of the ED Act. In due course, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application before the CBDT under sub-s. (2A) of s. 220 of the IT Act for waiver of the interest of Rs. 7,24,365 charged from the petitioner under sub-s. (2) of that section. The application was rejected by the Board and an intimation was sent to the petitioner vide letter dt. 26/30th Sept., 1986 (Annexure-A to the writ petition) stating that having considered the application filed by the petitioner and the report of the CIT in the matter, the Board was of the view that all the conditions of s. 220(2A) were not satisfied, hence no interference was called for. Almost after nine months thereafter the petitioner filed another application dt. 25th Aug., 1987 before the CIT (Central) Kanpur seeking the same relief as was sought before the CBDT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-s. (2) of the Act provides that if the amount specified in any notice of demand under s. 156 is not paid within the period specified under sub-s. (1) of s. 220, the assessee shall be liable to pay simple interest at the specified rate from the date commencing after the end of the period specified in sub-s. (1) of s. 220 of the Act. It is not in dispute that the petitioner did not pay the amount for which he was served a notice under s. 156 within the prescribed period and admittedly, there was a default on his part. Sub-s. (2A) was inserted in s. 220 of the Act by Taxation Laws (Amendment) Act, 1984, w.e.f. 1st Oct., 1984. That provision initially provided that notwithstanding anything contained in sub-s. (2) the Board may reduce or wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a second application on the facts of the case was clearly not maintainable and the amendment relied upon did not entitle the petitioner to file such an application. The CIT, in our opinion, had rightly rejected the application for waiver though the order proceeded to reject the same on merits. The order of the Board rejecting the application for waiver was not challenged and the petitioner kept quiet about it for a long time. Taking advantage of the amendment referred earlier, a second application was filed before the CIT which was totally unmaintainable. In the pleadings of the writ petition or in the grounds set out therein there is no challenge to the order passed by the Board except for a prayer for quashing of that order. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... caused or would cause genuine hardship to the assessee, envisaged under s. 220(2A), refers to the payment of interest and not to the payment of principal on which the interest was demanded. Despite our repeated query, learned counsel for the petitioner could not place any material before the Court either in the writ petition or in the application for waiver made before the Board or the CIT or otherwise, as to how that condition was satisfied in the instant case. Likewise, the other condition that the default in payment of the amount on which the interest has been paid or was payable under sub-s. (2) of s. 220 was due to the circumstances beyond the control of the assessee, is not satisfied on the facts of the case. The outstanding demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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