2006 (10) TMI 111

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....nature commanding/directing respondent No. 1 to grant full waiver of interest under section 220(2A) of the Income-tax Act, 1961, amount to Rs. 4,33,O71; (C) issue such other writ, orders or directions as this hon'ble court may deem fit and proper under the facts and circumstances of the case; (D) award costs to the petitioner." Briefly stated, the facts giving rise to the present petition are as follow: A huge income-tax demand was created for the assessment years 1972-73 to 1987-88. Interest was also charged. After giving full effect to the appellate and revisional orders, the demand was reduced as a consequence of which the interest amount of Rs. 16,94,592 was reduced to Rs. 10,57,877 which became payable by the petitioner. The petiti....

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....We have heard Sri Shakeel Ahmad, learned counsel for the petitioner, and Sri A. N. Mahajan, learned counsel appearing for the respondents. Sri Shakeel Ahmad, learned counsel for the petitioner, submitted that it is not in dispute that the Commissioner of Income-tax, Agra, in his order dated March 14, 1997, had found that the petitioner fulfilled all the three conditions laid down in section 220(2A) of the Act and, therefore, the Commissioner ought to have exercised the discretion in a judicial manner. According to him, the reason given for reducing the amount of interest payable by the petitioner to Rs. 4,33,071 is no reason in the eye of law and, therefore, the impugned order is liable to be set aside. Sri A. N. Mahajan, learned counsel....