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Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax - When tax payable and when assessee deemed in default - Where Chief Commissioner had found that assessee satisfied all conditions for waiver of interest, waiver of only part of interest was not justified [In favour of assessee] The petitioner filed an application for waiver of interest levied under sections 234A, 234B and 234C. However, the Chief Commissioner waived only a part of interest. Held that, there was no reason stated to limit the waiver to the amounts remaining due and payable. The Commissioner merely said that payment of further interest will cause hardship to them and did not state any reason for limiting or reducing the waiver. The discretion had not been properly exercised by the Commissioner. The first respondent was directed to pass fresh orders in accordance with the observations made above. CASES REFERRED TO Smt. Harbans Kaur v. CWT[1997] 224 ITR 418/90 Taxman 398 (SC) (para 7), Kerala State Cashew Development Corpn. Ltd. v. ITO [1990] 186 ITR 521/53 Taxman 381 (Ker.) (para 9) and B.M. Malani v.CIT[2008] 306 ITR 196/174 Taxman 363 (SC) (para 11). T.M. Sreedharan and Smt. C.K. Sherin for the Petitioner. P.K.R. Menon and George K. George for the Respondent. JUDGMENT 1. The petitioner, being the legal heir of the deceased assessee, filed an application under section 220(2A) of the Income-tax Act, 1961, which was considered by the Commissioner by exhibit P5 order, limiting the waiver to an amount of Rs. 24,408 which was the balance amount due from the deceased assessee. 2. The assessment for the assessment year 1989-90 completed under section 143(3) determining the total income was later revised reducing the total income. The total demand raised contained interest under sections 234A, 234B and 234C coming to Rs. 14,61,916 which was waived by an order dated October 21, 1999, by the Chief Commissioner of Income-tax. The application which is the subject-matter of the above writ petition was to waive the interest of Rs. 1,95,570 levied under section 220(2A) of the Income-tax Act. 3. The Chief Commissioner, the first respondent, passed detailed order by exhibit P5 limiting…

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