ANAND LIQUORS Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) THE petitioner, who was an assessee to income-tax, being aggrieved by the charging of interest on the penalty amount, has filed an application before the second respondent under Section 220(2A) of the Income-tax Act, 1961, for waiver of the interest levied under Sub-section (2) of Section 220 for the delayed payment of penalty imposed under the Act. THE second respondent by exhibit P-3 order rejected the same. It would appear from exhibit P-3 order that the contention taken by the petitioner before the second respondent is that the interest partakes of the character of penalty and penalty on penalty is not leviable. THE second respondent rejected the said contention, according to me, rightly. But the considerations for waiver of interest under Sub-section (2A) of Section 220 are different and the second respondent should have considered the question as to whether the petitioner had complied with the conditions provided for waiver or reduction of the interest levied under Section 220(2) of the Act specified in Sub-section (2A) of Section 220.

(2.) I have heard Sri N. R. K. Nair, learned counsel appearing for the respondents. It is not seen from exhibit P-3 order that the second respondent considered the said question. In the circumstances, exhibit P-3 order is set aside. There will be a direction to the second respondent to consider exhibit P-2 application afresh with notice and opportunity to the petitioner in accordance with law. It is open to the petitioner to raise all contentions taken in this original petition before the second respondent at the time of hearing of the application.