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2012 DIGILAW 939 (KER)

M. Kamala v. Commissioner of Income Tax

2012-10-12

ANTONY DOMINIC

body2012
JUDGMENT : Antony Dominic, J. Petitioner was an assessee under the Income Tax Act. It appears that for the assessment year 1984-1985, the petitioner did not file return even in spite of a notice issued to her under Section 148. In such circumstances, assessment was completed under Section 144 of the Act. She sought complete waiver of the interest demanded by an application under Section 220 (2A) of the Act. A copy of this application is Ext.P1. That application was rejected by Ext.P2 order passed by the first respondent, the relevant portion of which, reads thus: "I have considered the argument of the learned Advocate. Section 220(2A) prescribed three conditions to be satisfied. All the conditions taken together should be satisfied and assessee must co-operate not only in assessment but also in recovery. In this case, obviously, the assessee has not co-operated in assessment because return was not filed despite issue of notice under Section 148. Therefore, assessee is not eligible for waiver of interest. The application is rejected. " It is challenging Ext.P2, the writ petition is filed. 2. By order dated 29.05.2008, this Court granted stay of Ext.P2 order on condition that the petitioner remits Rs.60,000/-. According to the petitioner, this condition has been complied with. 3. Reading of Ext.P2 shows that the ground on which the application was rejected is that the petitioner did not co-operate in the assessment proceedings by filing a return even in spite of a notice under Section 148 issued to her. Having regard to the factual position that the petitioner did not file a return, this finding in Ext.P2 order is unassailable. 4. However, fact remains that the petitioner is an 85 year old lady and is an illiterate. In such circumstances, the first respondent could have considered her request at least for reduction of the interest liability and in my view, facts of this case justify an order reducing the interest liability. Therefore, I direct that Ext.P2 will stand modified and the interest levied shall stand reduced to Rs.60,000/-. It is directed that accepting Rs.60,000/-, which the petitioner has already paid in pursuance to the interim order dated 29.05.2008 towards the interest liability, the demand will be treated as satisfied. Writ Petition is disposed of as above.