Interest waiver depends on statutory hardship conditions; a stay of tax recovery alone is not enough.

Waiver of interest under section 220(2A) of the Income-tax Act is available only when the statutory conditions of genuine hardship, circumstances beyond the assessee's control, and cooperation in the proceedings are satisfied. A stay of recovery merely suspends enforcement of collection and does not, by itself, justify waiver of interest. The power to reduce or waive interest remains confined to the express requirements of the provision, so refusal of waiver is sustainable where those conditions are not met.

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Issues: Whether the assessee was entitled to waiver of interest under section 220(2A) of the Income-tax Act, 1961 merely because recovery of the tax demand had been stayed.

Analysis: Section 220(2A) permits reduction or waiver of interest only when the statutory conditions are satisfied, namely genuine hardship, circumstances beyond the assessee's control, and cooperation in the relevant proceedings. A stay of recovery affects only enforcement of collection and does not, by itself, operate as a ground for waiver of interest. The statutory power to waive interest is therefore confined to the conditions expressly laid down in the provision.

Conclusion: The assessee was not entitled to waiver of interest merely on the basis of the stay of recovery, and the refusal to waive interest called for no interference.

Final Conclusion: The writ petition failed and the order refusing waiver of interest was sustained.

Ratio Decidendi: Waiver of interest under section 220(2A) of the Income-tax Act, 1961 can be granted only on satisfaction of the statutory conditions, and a stay of recovery by itself is not a ground for such waiver.

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