2015 (12) TMI 113

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....le under Section 220(2) of the Act to 25%. 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 culminati....

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....tition No.1444 of 2009, which was allowed by judgment dated 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 pas....

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....inghani vs. Union of India, AIR 1967 SC 1427 and Kishan Lal vs. Union of India 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 la....

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....-A) of the Act, upon the conditions being fulfilled, the Commissioner has the power either to reduce or waive the amount of interest and that it was not correct to suggest that the moment the three conditions enumerated are fulfilled, the only power left with the Commission is to waive the amount of interest. 12. Considering the peculiar facts and circumstances of the present case, we find that the original demand was reduced to Rs. 75,000/-. However, the interest component under Section 220(2) of the Act has swelled to Rs. 4.77 lacs. According to the learned counsel for the petitioner, the interest as on date would be Rs. 1,19,353/- as per the impugned order. We find that for the assessment year 2008-09 the petitioner's total salary....