Wp(C)/13363/2009 Of M/S.a2Z Sanitary Wares v. The Chief Commissioner Of Income Tax

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. 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: WP(C)NO.13363/2009 PETITIONER'S EXHIBITS: APPENDIX P1COPY OF THE PROCEEDINGS OFFICE OF THE 1ST RESPONDENT DATED 03/4/06 P2COPY OF THE ORDER DATED 6/03/2007 ISSUED BY THE 1ST RESPONDENT. P3COPY OF THE NOTICE DATED 24/10/05 ISSUED U/S 221(1) OF THE INCOME TAX ACT TO THE PETITIONER.ACT TO THE PETITIONER. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE ANTONY DOMINIC,J ------------------------------------------ W.P.(C)No.13363 of 2009 ------------------------------------- Dated this the 14[th ] 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 theIncome Tax Act, which amounted to Rs.7.40 lakhs. Seekingwaiver of the interest, he filed an application under Section220(2A) of the Act. That application was considered by the firstrespondent, who issued Ext.P2 order waiving only 1/3[rd] of theinterest 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 theprovisions contained in section 220(2A) of the Act, it is entitledto waiver and having accepted the same, should have waived theinterest in its totality. However, learned standing counselappearing for the respondents submit that from the pleadingsitself it is obvious that this is a case where the grounds 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 bothsides. It is evident from Ext.P2 order that the first respondenthas exercised his power under section 220(2A) of the Act. Thistherefore, means that he was satisfied that grounds for waiverwere made out by the petitioner. However, the order does notcontain any reason why the first respondent has limited thewaiver only to 1/3[rd] of the interest levied. On the other hand,reading of paragraph 3 of the order shows that authorizedrepresentative of the petitioner had raised various factual issuesbefore the first respondent, to persuade him to pass an order towaiving the interest in its totality. However, these contentionsare not seen adverted to by the first respondent in Ext.P2. 5. In such circumstances and also taking note of the factthat interest has already been levied under section 234(A, B andC) of the Act. I feel that the ends of justice require that theinterest should be limited 1/3[rd] of what is levied on thepetitioner. 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 beonly 1/3[rd] of Rs.7.40 lakhs levied on the petitioner under section220(2) of the Income Tax Act. 5. In such circumstances and also taking note of the factthat interest has already been levied under section 234(A, B andC) of the Act. I feel that the ends of justice require that theinterest should be limited 1/3[rd] of what is levied on thepetitioner. 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 beonly 1/3[rd] of Rs.7.40 lakhs levied on the petitioner under section220(2) of the Income Tax Act. Writ petition is disposed of as above. ANTONY DOMINIC, JUDGE ln