TaxTMI 
TaxTMI 
1998 (11) TMI 11
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....he year 1975, and the father had been called upon to pay the tax together with the interest due, but he had failed to pay the same during his life time. The default continued even after his demise, the petitioner-son, who had inherited the properties also not having paid the tax, and the other amounts due. Ultimately, in the year 1996, the properties were sought to be sold, at which point of time, the assessee paid the tax, and also applied to the Commissioner for waiver of the interest. The Commissioner, by his order dated March 25, 1997, held that he had no power to waive the interest for any period subsequent to October 1, 1984, and that, for the period subsequent thereto, the facts of the case did not warrant waiver in excess of 50 per ....
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....ble for being exercised in respect of a period during which the authority did not have the power to waive the interest. The word "paid" was introduced in section 220(2A) of the Act by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, with effect from April 1, 1987. The object of introducing that term was only to make it clear that the authority is empowered to grant relief not only to those who had withheld the payment of interest in respect of the period covered by the section, but also those who had promptly paid that interest despite their eligibility to claim relief, and thereafter, had sought relief in accordance with that provision. The addition of the word "paid" was meant to prevent the likelihood of an honest ....
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....xpress language to that effect in the relevant provision, applied even in respect of matters relating to periods prior to the date of introduction of the provision. Section 220(2A) of the Act cannot be regarded as a clarificatory or declaratory provision. Prior to the introduction of the provision, there was no power in the authority named therein to waive interest. The question of clarifying a non-existent power, or to declare the existence of something which did not exist, therefore, does not arise for consideration. The Commissioner, therefore, was right in holding that his power under section 220(2A) of the Act did not extend to the period prior to October 1, 1984. If any other interpretation were to be effected, it would only open ....