Waiver of interest under Section 220(2A) of the Income Tax Act

IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.08.2021
CORAM
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
W.P. No. 31785 of 2018

R.S.Suriya ... Petitioner

vs

The Principal Commissioner of Income Tax
Central 2,
Nungambakkam,
Chennai - 34.

The Deputy Commissioner of Income Tax
Central Circle - II(4),
New No.46, M.G.Road,
Nungambakkam,
Chennai - 34.

The Assistant Commissioner of Income Tax
Central Circle - II(5),
New No.46, M.G.Road,
Nungambakkam,
Chennai - 34

The Assistant Commissioner of Income Tax
Central Circle - II(4),
New No.46, M.G.Road,
Nungambakkam,
Chennai - 34.   ... Respondents

For Petitioner : Mr.S.Raveekumar
For Respondents : Mr.A.P.Srinivas
Senior Standing Counsel for IT

O R D E R

The petitioner has stated that he is a professional Cine Actor and regularly filing return of income with the respondents. The petitioner follows the cash system of accounting as he received payments including advances by cash also. In the course of his profession, the petitioner received advances by cash with reference to priority in dates before finalization of the story or name or co-artists. Such advances will be treated as income and brought to books for accounting and taxation, only in the year, when the project materializes as it is common parlance in the industry that many projects would be dropped or delayed due to various reasons, including the call sheet problem. The petitioner sometimes out of movies. While so, he has been facing harassment at the hands of the respondents for quite sometime.

2. It is contended that, in the meantime, the assessment for the year 2011-2012 was taken up and the said assessment year is not connected with the issue raised in the present Writ Petition.

3. The learned counsel appearing for the petitioner solicited the attention of this Court regarding the assessment orders passed with reference to the assessment years 2007-08 and 2008-09.

4. Three conditions are stipulated under the provisions for payment of waiver of interest and all the three conditions are to be fulfilled cumulatively. The genunity of the hardship is the subjective satisfaction to be adjudicated and assessed by the Competent Authority under the said provision. The second condition that default in payment of tax, due to circumstances beyond the control of the assessee is also to be established with reference to evidences.

5.The other incidents are also recorded to establish that the petitioner assessee had not cooperated for the completion of the Income Tax proceedings. This being the factum established, this Court has no hesitation in arriving at a conclusion that the petitioner has not established all the three conditions stipulated in the provisions for the purpose of grant of waiver of interest. Contrarily, the reasons furnished in the impugned order for rejection of application for waiver of interest are candid and convincing.

6.  Thus, the Writ Petition fails and stands dismissed. However, there shall be no order as to costs.
 

Please find attached the enclosed file for the full judgement.