MALLA APPA RAO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner has assailed the order dated January 25, 1989, passed by the Commissioner of Income-tax, Visakhapt-nam, rejecting his request for waiver of interest under Section 22Q(2A) of the Income-tax Act, 1961, for the assessment years 1973-74 and 1979-80. As far as the claim for waiver based on Section 220(2A) is concerned, there is a clear finding to the effect that the petitioner could not establish any genuine hardship in not paying the tax and the said finding cannot be interfered with under article 226 of the Constitution of India. Hence, one of the pre-requisites for granting relief under the said section is not satisfied. At the same time, the petitioner also made a request for waiver of 50 per cent. of interest- under a scheme known as the Time Window Scheme formulated by the Central Board of Direct Taxes on July 5, 1988. As per the scheme, the assessee in whose case certification to the Tax Recovery Officer was sent by March 31, 1986, will be entitled to a rebate of 50 per cent. of the interest chargeable under Section 220(2) if he makes full payment of arrears together with 50 per cent. of the interest within stipulated time. THE Commissioner noted that the said condition has not been satisfied as regards the arrears of tax due for the year 1973-74 are concerned.

(2.) WITH regard to the year 1979-80, the learned Commissioner observed that there was no interest payable under Section 220(2) by the time the scheme came into force and, therefore, the question of allowing relief under the scheme does not arise.