Taxpayers are entitled to have their applications for waiver of interest reconsidered in light of subsequent tax payments.

J U D G M E N T

The petitioner has approached this Court aggrieved by Ext.P8 order passed by the 1st respondent, rejecting an application submitted by the petitioner seeking waiver of interest under Section 220 (2) of the Income Tax Act .

2. When the matter came up for admission, this Court had, taking note of the observations in Ext.P8 order, directed the petitioner to effect payment of tax amounts outstanding within a specified period, and it is stated by the learned senior counsel for the petitioner, and acknowledged by the learned Standing counsel for the respondents, that the tax amount of Rs.11,38,643/- has now been paid through four demand drafts produced as Ext.P10 along with I.A.No.10753/2017. Taking note of the said payment effected by the petitioner, I am of the view that the 1st respondent can be directed to consider the issue of waiver of the interest, afresh, in the light of the statutory provisions, taking note of the payments subsequently made by the petitioner. To enable the 1st respondent to do so, I quash Ext.P8 order, and direct the 1st respondent to pass fresh orders in the matter, after hearing the petitioner, within two months from the date of receipt of a copy of this judgment. While passing orders as directed, the 1st respondent shall ensure that the payments now effected by the petitioner, pursuant to the directions from this Court, are credited towards the tax liability and not to the interest component, and the consideration by the 1st respondent, pursuant to the directions of this Court, shall be only with regard to the waiver of the interest component that is shown in Ext.P8 order. The petitioner shall produce a copy of the writ petition together with a copy of this judgment, before the 1st respondent, for further action.

The writ petition is disposed as above.

A.K.JAYASANKARAN NAMBIAR JUDGE

prp/12/7/17