JUDGMENT :

(Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying for issuance of Writ of Certiorarified Mandamus, calling for the records relating to the proceedings of the first respondent in C.No.2747B/PCIT/C-2(4)/2017-18 dated 31.05.2018, quash the same and consequently, direct the first respondent to waive the interest for the assessment years 2007-2008 and 2008-2009.)

The lis on hand is instituted questioning the legal sustainability of the rejection order passed by the first respondent with reference to the applications submitted by the writ petitioner claiming waiver of interest under Section 220(2A) of the Income Tax Act, 1961.

2. 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.

3. This being the professional difficulties faced by the petitioner, it is contended that search operation was conducted in the premises of the petitioner on 19.10.2010. The assessment orders were passed by the third respondent on 30.12.2011 for the assessment years 2007-2008 and 2008-2009. The appeals filed by the writ petitioner before the Commissioner of Income Tax (Appeals) was partly allowed on 27.03.2013. As against the same, appeals and counter appeals were filed by the third respondent before the Income Tax Appellate Tribunal. By common order dated 23.08.2013, all the appeals and cross appeals were rejected confirming the orders of the CIT(A). However, the third respondent had not given effect to the orders of the Commissioner of Income Tax (Appeals) till 25.09.2013 and 27.09.2013, implying that according to the department, the assessment attains finality only after the orders passed by the Tribunal.

4. Under these circumstances, after giving effect to the orders of CIT(A), the petitioner filed Miscellaneous Petitions before the ITAT seeking relief against Double Taxation for both the years. The Miscellaneous Petitions were allowed as early as on 06.06.2014. Again, after a huge delay, the order was given effect only on 29.03.2017, after nearly three years.

5. 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. The petitioner filed rectification petition stating that the interest has been levied without taking into consideration the pre-paid taxes and that the credit of pre-paid taxes was not given in full and interest under Section 234A cannot be levied as the return was filed in time. The orders were passed on the rectification application on 30.03.2017, nearly after three years, accepting the contention of the petitioner for refund of Rs.2,33,76,590/-. The petitioner states that the department contributed for the delay in disposal of the application and other actions. Therefore, the petitioner is entitled for the waiver of interest under Section 220(2A) of the Income Tax Act. The petitioner made a request to adjust the refund amount due to the petitioner with the demand if any for the other years from 2014 onwards. However, the request was not considered and the interest was unjustly allowed for the assessment years 2007-