Law:

Section:

Section 220 of the Income-tax Act, 1961 - Collection and recovery of tax - When tax payable and when assessee deemed in default - Assessment years 1992-93, 1994-95 and 1995-96 - Whether it is not necessary that all three conditions laid down in section 220(2A) should co-exist before relief could be given to an assessee under said provision - Held, yes - Assessee's application seeking waiver of interest on delayed payment of taxes was rejected by authorities below - On instant appeal, it was seen that assessee was seeking relief under section 220(2A) on account of his ill-health and financial problems - Whether since there was no reasoning with regard to genuine hardship of assessee or on fact that default in payment of interest was due to circumstances beyond his control, impugned order was to be set aside and matter was to be remanded to respondent for disposal afresh - Held, yes FACTS The assessee had not filed his returns for the relevant assessment years in time. Subsequently, the income-tax authorities had issued a notice under section 148 calling upon him to file returns for those years and then the assessee filed the same. Against the assessment order, the assessee's appeals before the Commissioner (Appeals) and the Tribunal remained unsuccessful. He, thus, filed a writ petition questioning the rejection of his request for waiver of interest on the delayed payments of taxes, as determined for those years and for not paying the taxes within the time stipulated under the demand notice issued under section 156. The Single Judge dismissed the petition. On appeal : HELD It is relevant to note that sub-section (2A) of section 220 which begins with a non obstante clause, has prescribed two circumstances or a two-fold difficulty by reason of which a reduction or waiver of the amount of interest paid or payable by an assessee can be sought, namely, - (i ) payment of such an amount has caused or would cause a genuine hardship to the assessee; and (ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to circumstances beyond the control of the assessee. It is significant that the word 'and' is…

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