S SUBASH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner is aggrieved by the order of the Commissioner declining to waive the interest for the period to 1984 and limiting the waiver for the subsequent period only to an extent of 50 per cent. Interest had been levied in respect of the arrears of tax due from the petitioner's father for the assessment years 1956-57, 1968-69 and 1969-70.

(2.) THE properties of the petitioner's father, who died in the year 1981, had been attached in the year 1975, and the father had been called upon to pay the tax together with the interest due, but he had failed to pay the same during his life time. THE default continued even after his demise, the petitioner-son, who had inherited the properties also not having paid the tax, and the other amounts due. Ultimately, in the year 1996, the properties were sought to be sold, at which point of time, the assessee paid the tax, and also applied to the Commissioner for waiver of the interest. THE Commissioner, by his order dated March 25, 1997, held that he had no power to waive the interest for any period subsequent to October 1, 1984, and that, for the period subsequent thereto, the facts of the case did not warrant waiver in excess of 50 per cent. He noticed that there had not been total co-operation from the assessee's side, that the assessee had inherited substantial properties, and that it could not be said that the rejection of his claim for full waiver, and granting it only in part, would cause genuine hardship.

(3.) SECTION 220(2A) of the Act cannot be regarded as a clarificatory or declaratory provision. Prior to the introduction of the provision, there was no power in the authority named therein to waive interest. The question of clarifying a non-existent power, or to declare the existence of something which did not exist, therefore, does not arise for consideration.