2013 (5) TMI 61

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....ded in favour of the assessee. 2. The factual matrix of the case lies in a narrow compass. The wealth tax assessment of the petitioner was completed by the Wealth Tax Officer, Ward-2(2), Meerut by order dated 28-2-2007 for the assessment year 1990-91 and on 27-12-2006 for the assessment year 1991-92 on the total wealth of Rs.2,59,61,528/- and Rs.1,65,71,206/- as against total wealth of Rs.47,02,363/- for assessment year 1990-91 and Rs,15,94,600/- for the assessment year 1991-92. 3. The petitioner claims that variation in the wealth return and the wealth assessed was on account of valuation of shares of M/s. Saket (India) Ltd. and some differences are attributable to various claims of loans and liabilities and some amount were also added o....

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....d that his financial position is precarious and the payment of interest will cause genuine hardship to him. He tried to impress upon the authority that non-payment of interest was due to aforesaid circumstances beyond the control of the assessee. The assessee further stated that he had fully co-operated in the assessment proceedings and in such circumstances he is entitled to benefit of section 31(2A) of the Act, by waiving the interest imposed upon him under section 31(2). 7. The said application was considered by the Income Tax Commissioner, Meerut, respondent no. 1, and was allowed in part and the interest imposed upon the assessee under section 31(2) of the Act was waived to the extent of 50%. The Commissioner, Income Tax has recorded ....

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....ed order will show that the Income Tax Commissioner, Meerut, respondent no. 1, himself was convinced of the fact that all the ingredients stipulated under section 31(2A) of the Act for allowing the application for waiver are present. He recorded a finding that the business of the assessee has almost been shut down and the assessee is highly indebted to bank to the tune of Rs.658 crores and it is for the said reason that he has allowed the waiver application in part. It is apparent from the order that on basis of aforesaid finding the Assessing Officer, the Income Tax Commissioner, Meerut, was of the view that payment of interest demanded from the assessee under section 31(2) of the Act would cause genuine hardship to the assessee and that d....

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.... ingredients are present and the Income Tax Commissioner, Meerut was himself convinced of the said fact and it is for the said reason that he allowed the waiver application, though in part. 13. The next question which now arises for consideration in the fact of the instant case is whether the matter requires to be remitted back to the authorities for consideration of the question whether the waiver application should have been allowed in its entirety. Perusal of provision of section 31(2A) of the Act will demonstrate that the Commissioner while deciding the waiver application acts in a quasi judicial manner. Although he has discretion while dealing with waiver application but the discretion has to be exercised judiciously. It is not based....