2015 (12) TMI 113

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..... The petitioner, being aggrieved, has filed the present writ petition praying that in the present facts and circumstances of the case, which has come on record, the petitioner was entitled for complete waiver of the interest. 3. The background leading to the filing of the writ petition need not be repeated again as complete facts has already been given in the judgment of this Court dated 25.11.2011 passed in Writ Petition No.1444 of 2009. 4. However, in a nut shell it needs to be stated that a huge tax demand was created by the Income Tax Officer for the Assessment Year 1994-95, which the petitioner contested upto the Tribunal. Interest was also charged in the assessment order. After culmination of the appeal, the tax demand was reduced ....

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.... 25.1.2011 and the matter was remitted again to the Commissioner to pass a fresh order in the light of the observation made in the said judgment. The operative portion of the judgment is extracted hereunder: "We are of the opinion that where all the three conditions are found to be satisfied, the CIT would be failing to exercise his jurisdiction, in reducing or waving amount of interest paid or payable by the assessee. In this case the CIT, in our opinion, failed in exercise of the jurisdiction in reducing or waiving the amount of interest, which was without doubt, much larger as against the demand of tax. The writ petition is allowed. The order dated 26.2.2009 passed by the Commissioner of Income Tax, Varanasi in the matter of the pet....

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....dia and another, 230 ITR 85 on the issue that the order of the authority under Section 220 (2A) of the Act being a quasi judicial order could be subjected to judicial review and that it was imperative for the authority to give reasons while disposing of the application. It was also held that where the the statute gives a discretion to an authority to exercise its power, such authority could exercise the same in a fair manner. 8. Having heard the learned counsel for the parties, we find that the Writ Court by its order dated 25.11.2011 had remitted the matter to the Commissioner to reconsider the question of waiver of interest strictly in terms of the conditions laid down in Section 220(2A) of the Act. The Commissioner while reconsidering t....