Waiver of interest requires statutory hardship conditions; mandatory interest and inadequate proof defeat relief under income tax law.

Interest on belated tax payment under the Voluntary Disclosure of Income and Wealth Act, 1976 was treated as mandatory, and that statute did not itself provide for waiver. Section 220(2A) of the Income-tax Act, 1961 permits reduction or waiver only within its own framework and only when the assessee proves genuine hardship, circumstances beyond control, and cooperation in the relevant proceedings. The Commissioner's finding that no acceptable material established those conditions was not shown to be unreasonable, so refusal of waiver would not justify interference in writ jurisdiction.

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Issues: Whether the Commissioner was justified in rejecting the assessee's application for waiver of interest under section 220(2A) of the Income-tax Act, 1961, arising from belated payment of tax on voluntarily disclosed income.

Analysis: The interest liability on delayed payment under the Voluntary Disclosure of Income and Wealth Act, 1976 was mandatory, and that enactment did not itself provide for waiver of interest. Section 220(2A) of the Income-tax Act, 1961, which empowers reduction or waiver of interest, was introduced later and operates only within its own statutory framework. Even assuming the provision could be considered, the assessee had to satisfy the statutory conditions of genuine hardship, circumstances beyond control, and cooperation in the relevant proceedings. The Commissioner recorded that no acceptable material was placed to establish genuine hardship or the requisite circumstances, and the materials on record did not justify interference with that finding. The power under section 220(2A) is discretionary, but it can be exercised only when the statutory requirements are met.

Conclusion: The rejection of the waiver application was valid and the decision was against the assessee.

Final Conclusion: The writ petition challenging refusal of waiver of interest failed, and the assessment-related relief sought by the assessee was declined.

Ratio Decidendi: Waiver of interest under section 220(2A) can be granted only on satisfaction of the statutory conditions, and where the underlying statute makes interest mandatory and the assessee fails to prove genuine hardship and circumstances beyond control, the authority's refusal to waive interest cannot be interfered with in writ jurisdiction.

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