M/S.A2Z SANITARY WARES V. THE CHIEF COMMISSIONER OF INCOME TAX,

WP(C)/13363/2009

AI Insights

The case involves M/S A2Z Sanitary Wares, represented by its managing partner E.S. Bose, challenging an order by the Chief Commissioner of Income Tax, Kochi, which partially waived the interest levied on delayed tax payments for the assessment years 1993-1994, 1994-1995, and 1995-1996. The petitioner sought a complete waiver under section 220(2A) of the Income Tax Act, arguing that the grounds for a full waiver were met. However, the first respondent only granted a waiver of 1/3rd of the interest, amounting to Rs.7.40 lakhs. The court agreed that the first respondent had the power to waive the interest but found the reasoning for not waiving the full amount insufficient, leading to the modification of the order.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 699209 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 14-03-2012
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: N N SUGUNAPALAN; S SUJIN
• Keywords: Assessment; Income Tax; Interest Waiver; Section 220(2A)
• Section: 234 A; 234 B; 234 C; 220(2); 221(1); 220(2A)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC WEDNESDAY, THE 14TH DAY OF MARCH 2012/24TH PHALGUNA 1933 WP(C).No. 13363 of 2009 (M) --------------------------- PETITIONER(S): ------------------------ M/S.A2Z SANITARY WARES, P.T.USHA ROAD,ERNAKULAM,COCHIN-682 011 REPRESENTED BY ITS MANAGING PARTNER,E.S.BOSE. BY SRI.N.N.SUGUNAPALAN (SR.) ADV.SRI.S.SUJIN RESPONDENT(S): -------------------------- 1. THE CHIEF COMMISSIONER OF INCOME TAX,KOCHI 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1),ERNAKULAM. 3. UNION OF INDIA, REP.BY THE SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE,NEW DELHI. R1 & R2 BY ADV.SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 14-03-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.13363/2009 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE PROCEEDINGS OFFICE OF THE 1ST RESPONDENT DATED 03/4/06 P2 COPY OF THE ORDER DATED 6/03/2007 ISSUED BY THE 1ST RESPONDENT. P3 COPY OF THE NOTICE DATED 24/10/05 ISSUED U/S 221(1) OF THE INCOME TAX ACT TO THE PETITIONER. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts ANTONY DOMINIC,J ------------------------------------------ W.P.(C)No.13363 of 2009 ------------------------------------- Dated this the 14th day of March, 2012 JUDGMENT Challenge in the writ petition is against Ext.P2 order. 2. The petitioner is an assessee under the Income Tax Act. He filed returns for the assessment orders 1993-1994, 1994- 1995 and 1995-1996. The assessments were completed in 2000. They were also levied interest under Section 220(2) of the Income Tax Act, which amounted to Rs.7.40 lakhs. Seeking waiver of the interest, he filed an application under Section 220(2A) of the Act. That application was considered by the first respondent, who issued Ext.P2 order waiving only 1/3rd of the interest levied. It is this order which is under challenge. 3. According to the counsel for petitioner, the first respondent has accepted the petitioner's case that in view of the provisions contained in section 220(2A) of the Act, it is entitled to waiver and having accepted the same, should have waived the interest in its totality. However, learned standing counsel appearing for the respondents submit that from the pleadings itself it is obvious that this is a case where the grounds W.P.(C)No.13363 of 2009 2 mentioned in section 220(A) were not cumulatively made out and that in spite of it partial waiver has been granted. 4. I have considered the rival submissions made by both sides. It is evident from Ext.P2 order that the first respondent has exercised his power under section 220(2A) of the Act. This therefore, means that he was satisfied that grounds for waiver were made out by the petitioner. However, the order does not contain any reason why the first respondent has limited the waiver only to 1/3rd of the interest levied. On the other hand, reading of paragraph 3 of the order shows that authorized representative of the petitioner had raised various factual issues before the first respondent, to persuade him to pass an order to waiving the interest in its totality. However, these contentions are not seen adverted to by the first respondent in Ext.P2. 5. In such circumstances and also taking note of the fact that interest has already been levied under section 234(A, B and C) of the Act. I feel that the ends of justice require that the interest should be limited 1/3rd of what is levied on the petitioner. W.P.(C)No.13363 of 2009 3 Therefore, the writ petition is disposed of modifying Ext.P2 by directing that the interest levied on the petitioner shall be only 1/3rd of Rs.7.40 lakhs levied on the petitioner under section 220(2) of the Income Tax Act. Writ petition is disposed of as above. ANTONY DOMINIC, JUDGE ln "