JUDGMENT Nagarathna, J. This Writ Appeal is directed against the Order dated: 23-11-2007, by the learned Single Judge, dismissing the Writ Petition, filed by the Appellant herein. 2. The appellant who was the petitioner in the Writ Petition is an assessee under the Income Tax Act. Being aggrieved by an order dated: 21-8-2007 at Annexure ‘A’ passed by the Chief Commissioner of Income Tax, (Respondent No.1) rejecting his request under Section 220(2A) of the Income Tax Act, which enables an assessee to seek reduction of waiver of the interest payable on the delayed payment of tax demanded pursuant to a notice issued under Section 156 of the Act, and for defaulting in payment of tax beyond the permitted period, had filed the Writ Petition. 3. In respect of assessment years 92-93, 94-95 and 95-96 the assessee had not filed his return in time and the Income Tax Authorities had issued notice under Section 148 of the Act, calling upon the assessee to file returns for those years who subsequently filed the returns for the said years. Thereafter the assessing officer had assessed the assessee’s income and being aggrieved by the assessment order, the assessee had filed an appeal to the Commissioner of Income Tax (Appeals) and another appeal to the Tribunal. Being unsuccessful in the said appeals, the assessee had, filed the Writ Petition questioning the rejection of his request for waiver of interest on the delayed payment of tax, as determined for those years and for not paying the tax within the time stipulated under the demand notice under Section 156 of the Act. The writ petition was dismissed. 4. We have heard the Learned Counsel for the appellant/assessee and Learned Counsel for the respondent/authority. 5. Learned Counsel for the appellant submits that, the impugned order dated: 21-8-2007 passed by respondent herein (Annexure-A to the writ petition) has been passed contrary to the provisions of Section 220(2A) of the Income Tax Act, and that, there has been a non-application of mind to the conditions mentioned under the sub-section and the request made by the petitioner at Annexures- H 1, H2 and H3, has been rejected in an arbitrary manner. Further, the previous applications dated 27-8-2002 and 3-9-2002 for waiver of interest were initially not considered by the respondent and that, on filing Writ Petition No.10246/2007, and seeking a direction to the respondent to consider the applications dated 27 -8-2003 and 3-92002, which was granted by order dated: 18-7-2007 by this Court, directing the respondent to dispose of the representations within four months from the date of receipt of the certified copy of the order, the request of the appellant was considered, but erroneously rejected that the petitioner had not satisfied condition (c) for waiver of interest charged under Section 220(2A) of the Income Tax Act, 1961, by not co-operating with the Department by filing returns or in the assessment proceedings/payment of tax demand is not correct. It is also submitted by the Learned Counsel for the appellant that, the first respondent had taken into consideration the report of the assessing officer while passing the impugned order and that, the said report was not made known to the appellant and therefore, the order impugned is bad on that ground also. 6. Per contra, the Learned Counsel for the respondent has submitted that, the order passed at Annexure-A to the Writ petition is just and proper and that, it does not call for any interference in this appeal and that the learned single Judge was right in dismissing the writ petition. He has also relied upon two judgments in the case of G. T.N. TEXTILES Vs. DEPUTY COMMISSIONER OF INCOME TAX AND ANOTHER, ITR Vol. 217 (1996) 653 and in the case of RAMAPATI SINGHANIA vs COMMISSIONER OF INCOME TAX AND OFFICERS, ITR Vol. 234 (1998) 655, to submit that, all the three conditions laid down in Section 220(2A) should exist before interest can be waived under the said provision and that, in the instant case the respondent had categorically held that, condition (iii) of Section 220(2A) had not been fulfilled and therefore, the appellant is not entitled to relief under the said provision. 7. Before considering the rival contentions of the respective parties, it is necessary to extract Section 220 of the Income Tax Act 1961. 7. Before considering the rival contentions of the respective parties, it is necessary to extract Section 220 of the Income Tax Act 1961. “220 (1) Any amount, otherwise than by way of advance tax, specified as payable in a notice of demand under Section 156 shall be paid within (thirty) days of the service of the notice at the place and to the person mentioned in the notice: Provided that, where the (Assessing) Officer has any reason to believe that it will be determined to revenue if the full period of (thirty) days aforesaid is allowed, he may, with the previous approval of the (Joint Commissioner), direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of (thirty) days aforesaid, as may be specified by him in the notice of demand. (2) If the amount specified in any notice of demand under Section 156 is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at (one) per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid: Provided that, where as a result of an order under Section 154, or Section 155, or Section 250, or Section 254, or Section 260, or Section 262, or Section 264 [or an order of the settlement Commissioner under sub-section (4) of Section 245D], the amount on which interest was payable under this Section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded:] Provided further that in respect of any period commencing on or before the 31st day of March, 1989 and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of one and one half percent, for every month or part of a month. (2A) Notwithstanding anything contained in sub-section (2) [the [Chief Commissioner or Commissioner] may] reduce or waive the amount of interest [paid or] payable by an assessee under the said sub-section if [he is satisfied] that (i) payment of such amount [has caused or] would cause genuine hardship to the assessee; (ii) default in the payment of the amount on which interest [has been paid or] was payable under the said sub-section was due to circumstances beyond the control of the assessee; and (iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.] (3) Without prejudice to the provisions contained in sub-section (2), on an application made by the assessee before the expiry of the due date under sub-section (1), the [Assessing] officer may extend the time for payment or allow payment by installments, subject to such conditions as he may think fit to impose in the circumstances of the case. (4) If the amount is not paid within the time limited under sub-section (1) or extended under sub-section (3), as the case may be, at the place and to the person mention in the said notice the assessee shall be deemed to be in default”. (5) If, in a case where payment by installments is allowed under sub-section (3), the assessee commits defaults in paying anyone of the installments within the time fixed under that sub-section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other installment or installments shall be deemed to have been due on the same date as the installment actually in default. (6) Where an assessee has presented an appeal under Section 246 [or Section 245A] the [Assessing] officer may, in his discretion and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired, as long as such appeal remains undisposed of. (7) Where an assessee has been assessed in respect of income arising outside India in a country the laws of which prohibit or restrict the remittance of money to India, the [Assessing] officer shall not treat the assessee as in default in respect of that part of the tax which is due in respect of that amount of his income which, by reason of such prohibition or restriction, cannot be brought into India, and shall continue to treat the assessee as not in default in respect of such part of the tax until the prohibition or restriction is removed. Explanation - For the purpose of this section, income shall be deemed to have been brought into India if it has been utilised or could have been utilised for the purposes of any expenditure actually incurred by the assessee outside India or if the income, whether capitalised or not, has been brought into India in any form.“ A reading of sub-section (1) of Section 220 makes it clear that, any amount specified as payable in a notice of demand under Section 156 shall be paid by the assessee within 30 days from the date of service of the notice, and if the amount specified in the said notice is not paid within the period 30 days, the assessee shall be liable to pay simple interest at 1 % for every month or part of the month, comprised in the period commencing from the day immediately following the end of 30 days and ending with the day on which the amount is paid (vide sub-section (2) of Section 220). Sub-section (2a) of Section 220 states that, notwithstanding anything contained in sub-section (2) the Chief Commissioner or Commissioner may reduce or waive the interest paid or payable by an assessee under the said sub-section, if he satisfied that; (i) payment of such amount [has caused or] would cause genuine hardship to the assessee; (ii) default in the payment of the amount on which interest [has been paid or] was payable under the said sub-section was due to circumstances beyond the control of the assessee; and (iii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.] 8. It is relevant to note that, sub-section (2A) of Section 220 which begins with a non-obstante Clause has prescribed two circumstances or a two-fold difficult by reason of which a reduction or waiver of the amount of interest paid or payable by an assessee could be sought, namely, (i) payment of such amount [has caused or] would cause genuine hardship to the assessee. (ii) default in the payment of the amount on which interest [has been paid or] was payable under the said sub-section was due to circumstances beyond the control of the assessee. It is significant that the word “and” is absent after clause (i) of sub-section (2A) to Section 220, while the word “and” is inserted after clause (ii) of sub-section (2A) of Section 220. Therefore, in our view the two circumstances referred to above are mutually exclusive and it is only when a situation under Clause (ii) occurs that, the condition under Clause (iii) has to be read and that, the condition at clause (iii) is not applicable to a case falling under Clause (i) of sub-section (2A) of Section 220. 9. We are, therefore, not persuaded to accept the submission of the Learned Counsel for the respondent that, all the three conditions laid down in sub-section (2A) of Section 220 should co-exist before relief could be given to an assessee under the said provision, as enunciated in the two judgments referred to above. 10. Be that as it may, a persual of the representation made by the assessee in the instant case for the three years as per Annexure-HI, H2 and H3, at paragraphs 13 to 19 of the said annexures, makes it apparent that the assessee had pleaded that on account of his ill-health and financial problems and family partition, he was seeking relief under sub-section (2A) of Section 220. In the impugned order however, while there is a passing reference to ill-health of the assessee, there is no application of mind on clause (i) and clause (ii) of sub-section 2A of Section 220 vis-a-vis Annexure HI, H2 and H3. The impugned order merely states that, the assessee has not satisfied any of the conditions and in particular had not co-operated with the department in filing of the returns nor in the assessment proceedings/payment of tax demand therefore the assessee’s petition was rejected and thereby the assessee’s request was rejected. The impugned order merely states that, the assessee has not satisfied any of the conditions and in particular had not co-operated with the department in filing of the returns nor in the assessment proceedings/payment of tax demand therefore the assessee’s petition was rejected and thereby the assessee’s request was rejected. There is no reasoning with regard to the genuine hardship of the assessee or on the fact that the default in the payment of interest was due to circumstances beyond the control of the assessee. 11. We, therefore, set aside the order of the learned Single Judge, quash order dated 21.8.2007 at Annexure ‘A’ to the Writ Petition and direct the respondent to consider the request made by the assessee at Annexures HI, H2 and H3 of the writ petition for waiver of the interest in terms of the observations made above. 12. Writ Appeal is allowed, but without any order as to costs.