RATAN LAL AGRAWAL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) BY means of the present writ petition filed under Article 226 of the Constitution of India, the petitioner, Ratan Lal Agrawal, seeks the following reliefs: (A) issue a writ, order or direction in the nature of certiorari quashing the impugned order dated August 31, 2000, (annexure 15), passed by the Commissioner of Income -tax, Agra, respondent No. 1; (B) issue a writ, order or direction of a suitable nature commanding/directing respondent No. 1 to grant full waiver of interest under Section 220(2A) of the Income -tax Act, 1961, amount to Rs. 4,33,071; (C) issue such other writ, orders or directions as this hon'ble court may deem fit and proper under the facts and circumstances of the case ; (D) award costs to the petitioner.

(2.) BRIEFLY stated, the facts giving rise to the present petition are as follow: A huge income -tax demand was created for the assessment years 1972 -73 to 1987 -88. Interest was also charged. After giving full effect to the appellate and revisional orders, the demand was reduced as a consequence of which the interest amount of Rs. 16,94,592 was reduced to Rs. 10,57,877 which became payable by the petitioner. The petitioner moved an application under Section 220(2A) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), for waiver before the Commissioner of Income -tax, Agra. The Commissioner of Income -tax, Agra, vide order dated March 14,1997, had found that all the three conditions mentioned in Clauses (i) to (iii) of Sub -section (2A) of Section 220 of the Act have been fulfilled by the petitioner. However, he waived the entire amount of interest except a sum of Rs. 4,33,071. The order dated March 14, 1997, was challenged by the petitioner by means of Civil Miscellaneous Writ Petition No. 453 of 1997 before this court, which was disposed of vide judgment and order dated April 19,1999. This court has upheld the discretion of the Commissioner to either reduce the amount or to waive it. However, it remanded the matter to the Commissioner to pass a fresh order relating to Rs. 4,33,071 after hearing and giving an opportunity to the petitioner and carefully considering the submissions of the petitioner in the matter. Pursuant to the directions given by this court, the Commissioner heard the matter and by order dated August 31, 2000, has waived the entire amount of interest except a sum of Rs. 4,33,071 which, according to him, represents the amount of interest paid by the Department under Section 244(1A) of the Act in respect of delayed refund for the assessment years 1972 -73 and 1974 -75 to 1982 -83. The order dated August 31, 2000, is under challenge in the present writ petition.

(3.) SRI Shakeel Ahmad, learned Counsel for the petitioner, submitted that it is not in dispute that the Commissioner of Income -tax, Agra, in his order dated March 14, 1997, had found that the petitioner fulfilled all the three conditions laid down in Section 220(2A) of the Act and, therefore, the Commissioner ought to have exercised the discretion in a judicial manner. According to him, the reason given for reducing the amount of interest payable by the petitioner to Rs. 4,33,071 is no reason in the eye of law and, therefore, the impugned order is liable to be set aside.