Law:

Section:

Where assessee does not co-operate in recovery of tax dues, interest on penalty imposed on assessee under section 271(1)(c) of the Income-tax Act, 1961 could not be waived Section 220, read with section 271(1)(c), of the Income-tax Act, 1961 - Collection and recovery of tax - When tax payable and when assessee deemed in default - Assessment year 1985-86 - Penalty was imposed on assessee-company under section 271(1)(c) - Assessee filed an application under section 220(2A) for waiver of interest on penalty imposed, but same was rejected by Commissioner on ground that conditions laid down in section 220(2A) for waiver were not satisfied by assessee - Further assessee had not been able to show that any genuine hardship would have been caused to it, if payment of interest on penalty imposed had been made by it, nor it had shown that non-payment of penalty was due to circumstances beyond its control - Whether since assessee had not co-operated in proceedings for recovery of amount due from it, order of Commissioner refusing to waive interest was legal and valid - Held, yes FACTS The Assessing Officer imposed penalty on the assessee under section 271(1)(c), but the same was deleted by the Commissioner (Appeals). The Tribunal reversed the order of the Commissioner (Appeals) and restored the order of the Assessing Officer. On reference under section 256(1), the High Court confirmed the imposition of penalty on the assessee under section 271(1)(c). The assessee, subsequently, filed an application under section 220(2A) and sought for waiver of interest on the penalty imposed. The Commissioner rejected the assessee's prayer for waiver of interest on the ground that the conditions laid down in section 220(2A) which enables such waiver were not satisfied. On writ petition : HELD The assessee had not been able to show that any genuine hardship would have been caused to it, if payment of interest on the penalty imposed had been made by it; nor had the assessee been able to show that non-payment of the penalty was due to circumstances beyond its control. It was clear from the facts noticed in the order of the Commissioner, that the assessee had certainly not co-operated in the…

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