The High Court of Kerala dismissed a writ petition challenging an order rejecting a request for waiver of interest under Section 220(2A) of the Income Tax Act. The Court held that the petitioner did not satisfy the condition of genuine hardship and upheld the lower authority's refusal.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT :
THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM
TUESDAY, THE 2ND JUNE 2009 / 12TH JYAISHTA 1931
OP.No. 27470 of 2001(T)
PETITIONER(S):
P. SUDHAKARAN PROPRIETOR, M/S SUDHAKARA HARDWARES VARKALA
BY ADV. SRI. K.M.V.PANDALAI
RESPONDENT(S):
2. THE COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM.
BY ADV. SRI.P.K.RAVINDRANATHA MENON, SENIOR ADVOCATE-R2 SRI.GEORGE K. GEORGE, STANDING COUNSEL FOR IT FOR R1 SRI. JOSE JOSEPH, STANDING COUNSEL.
THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 02/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
O.P NO.27470 OF 2001
APPENDIX
PETITIONER'S EXHIBITS:
Ext.P1: Order dated 19.6.1990 passed by the Income Tax officer, Ward I, Thiruvananthapuram for 88-89.
Ext.P2: letter dated 06.03.1995 filed by the petitioner.
Ext.P2(a): statement showing the details of tax paid.
Ext.P2(b): Challan receipt for Rs.31,502 date 04.11.1999.
Ext.P3: proceedings of the Deputy Commissioner of Income Tax, Circle II, Divison I, Thiruvananthapuram dated 25.10.2000.
Ext.P4: petition u/s 220(2A) dated 27.11.2000 filed by the petitioner before the commissioner of Income Tax, Thiruvananthapuram.
Ext.P5: letter dated 27.11.2000 filed by the petitioner before the Deputy Commissioner of Income Tax, Thiruvananthapuram.
Ext.P6: order u/s 220(2A) of the Act passed by the Commissioner of Income Tax, Thiruvananthapuram on 29.01.2001.
Ext.P7: copy of Balance Sheet as on 31st March 2000 dated 23.10.2000.
Ext.P7(a): copy of the Balance Sheet as on 31st March 1999 dated 02.10.1999.
PETITIONER'S EXHIBITS: NIL
/True Copy/
P.A TO JUDGE.
SPC
C.K.ABDUL REHIM, J.
---------------------------
O.P No.27470 OF 2001
------------------------------DATED THIS THE 2ND DAY OF JUNE, 2009
J U D G M E N T
under S.220(2A) of the Income Tax Act, seeking waiver of interest due on delayed payment of tax, with respect to the assessment year 1988-89. The petitioner filed return for the said year declaring a total income of Rs.59,410/-. The assessment was completed under S.143(3) on a total income of Rs.5,51,190/-, and the petitioner conceded additional income of Rs.4,91,769/-, to make up discripancies in the credit balance in the books of accounts. The assessment resulted in a demand of Rs.3,50,106/-, which was subsequently increased to Rs.3,61,891/-. The interest charged under S.139(8) and 217 were waived to the extent of 50% by the first respondent, thereby reducing the demand to Rs.3,11,502/-. The petitioner
O.P No.27470 of 2001
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paid the amount in various instalments. Thereafter the assessing officer, vide proceedings dated 25.10.2000 levied interest under S.220(2) amounting to Rs.1,67,453/- which was later reduced to 1,08,982/-. Ext. P4 petition was filed seeking to waive imposition of the said amount as interest leviable under S.220(2).
following conditions,
(1). Payment of such amount has caused or would cause genuine hardship to the assessee
(2). default in payment of the interest which has been paid or was payable under the said Sub-section was due to circumstances beyond the control of the assessee and
(3) the assessee has cooperated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.
The Commissioner of Income Tax, on consideration of the petition, observed that the assessee has co-operated with the assessment proceedings and hence the condition No.(3) mentioned above has been satisfied by him. While considering the condition No.(1) as to whether the payment of the amount will cause genuine hardship to the assessee, the Commissioner
observed that the assessee had returned a total income of
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Rs.3,38,650 and Rs.3,80,980/- for the assessment years 199899, and 1999-2000, respectively. It is found that the assessee has got agricultural income also. Considering the fact that the interest to be waived is Rs.1,08,982/- only, the first respondent held that the payment of such an amount will not cause genuine hardship to the assessee .
O.P No.27470 of 2001
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O.P No.27470 of 2001
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C.K.ABDUL REHIM, JUDGE.
spc
3 issues framed by the court
Whether waiver of interest under Section 220(2A) of the Income Tax Act should be allowed given the petitioner's financial capacity.
Whether the Commissioner of Income Tax properly applied the statutory conditions for granting waiver of interest.
Whether the writ petition challenging the rejection order has merit under Article 226.
Colour shows how this judgement treated each authority
M/s. G.T.N TextilesRelied on¶4
217 ITR 653
3 provisions across 1 enactments
P. SUDHAKARAN PROPRIETOR, M.S. SUDHAKARA HARDWARES VARKALA
DEPUTY COMMISSIONER OF INCOME TAX CIR II, DIVISION I, THIRUVANANTHAPURAM
THE COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM
C.K.ABDUL REHIM
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
