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TaxTMI 
TaxTMI 
TaxTMI 
2011 (7) TMI 529
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.... date of payment. The petitioner invoked the jurisdiction of the 1st respondent under Section 220(2A) of the Income Tax Act seeking waiver or reduction of the interest payable. That petition was rejected by Ext.P4 order holding that the petitioner has not satisfied the conditions in Section 220(2A) for becoming eligible for waiver of interest. That is under challenge in this writ petition. The petitioner also raises a contention that in Ext.P2 interest has been calculated on interest also, which is not permissible. 2. The petitioner contends that the 1st respondent has not properly applied his mind to the facts and law applicable. He submits that in the appeals, the petitioner applied for and obtained conditional stay. The petitione....
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.... locked up in deposits in banks and financial institutions and if he withdraws the deposits prematurely, he would lose interest. According to the learned counsel for the Income Tax Department, that cannot operate as a circumstance beyond the control of the assessee and genuine hardship to the assessee. He had money with him and in order to make money with that money, he did not pay the tax due, which cannot be accepted as a genuine hardship or circumstance beyond the control of the assessee, is the contention. 4. As regards the second contention, he would point out that Ext.P2 demand for interest was dated 17.6.2009. The petitioner never raised any objection to the same even in Ext.P3. The petitioner does not dispute the correctness....
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.... 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 the 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." As is clear from the same, three conditions mentioned therein should be cumulatively satisfied to enable the assessee to avail of the benefit of that section. First of all, the petitioner should prove that payment of the said amount would cause genuine hardship to him and secondly, that default in payment of demand on which interest has been paid o....
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.... in which the assessee had deposits, did not make tax payment directly to the Department on the basis of notices issued by Assessing Officer under section 226(3) of the Act on 16.3.2009. iii) The recovery of tax stood stayed from 19.03.2009 to 30.06.2009 by the ITAT, Kochi. It is also contended that tax payment before the stipulated date would have caused genuine hardship to him as withdrawal of term deposits before maturity would have resulted in loss of interest receipts. It is also contended that he had cooperated with the Department during the assessment proceedings and for remittance of the tax. Accordingly, the assessee has sought waiver of interest under section 220(2A) of the Act. 4. Admittedly, the tax deman....
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....ce to collection by applying for stay of operation of the notice of attachment under section 226(3) issued by the Assessing Officer on 16.03.2009. As such, the assessee has not co-operated with the proceedings for collection of the tax which was due from him. 5. In the light of the above facts, it is found that the conditions specified in section 220(2A) are not satisfied in this case for ordering waiver of interest charged under section 220(2) of the Act. It is settled law that all the three conditions prescribed in section 220(2A) are to be satisfied cumulatively for making eligible a case for waiver of interest under section 220(2). None of the conditions is satisfied. Therefore, this is not a fit case for waiver of the interest.....