IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16-02-2026 CORAM THE HON'BLE MR JUSTICE C. SARAVANAN and WMP No. 14059 of 2024 Lloyd Insulations (India) Limited, Rep. by General Manager, No.5A, Haddows Lane, Haddows Road, Nungambakkam, Chennai 600 006.

TAN:CHEL00058C.

..Petitioner Vs

1. The Commissioner of Income Tax (TDS), Income Tax Department, BSNL Tower, No. 16, Greams Road, Chennai 600 006.

2. The Joint Commissioner of Income Tax, TDS Range - 2, Chennai Income Tax Department, BSNL Tower, No.16, Greams Road, Chennai 600 006.

3. The Assistant Commissioner of Income Tax, TDS Range 2, Chennai, Income Tax Department, BSNL Tower, No.16, Greams Road, Chennai 600 006.

..Respondents Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, to call for the records of the Writ Petitioner on the file of the 1^st Respondent to quash the impugned order passed rejecting the plea for waiver of interest under Section 220(2) of the Act dated 30.01.2024 for the financial years 2013-14 to 2022-23 in C.No- 36/Waiver/ CIT (TDS)/

2023-24.

For Petitioner : Mr.A.S.Sriraman For Respondents: Dr.B.Ramasamy, Senior Standing Counsel

Order

In this writ petition, the petitioner is before this Court against the impugned order dated 30.01.2024 passed by the first respondent under Section 220(2A) of the Income Tax Act, 1961. By the said impugned order, the request filed by the petitioner for waiver of interest on interest for the Assessment Years

2013-2014 to 2022-2023 has been rejected, by the following observations:-

“ 5. The petition filed and the submissions made by the petitioner as well as the reports of the Assessing Officer & the Range Head are duly perused and the petition is disposed off as under:.

5.1 As per the provisions of the I.T. Act, the amount of interest paid or payable by tiie taxpayer under section 220(2) could be reduced or waived upon satisfaction of the following conditions:

(i) Payment of such interest has caused or would cause genuine hardship to the taxpayer.

(ii) Default in the payment of the amount on which interest has been paid or was payable, was due to circumstances beyond the control of the taxpayer.

(iii) The taxpayer has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him.

5.2. The interest u/s. 220(2) of the Act of Rs. 29,37,313/-

has arisen due to various defaults of TDS. The assessee had re- quested for waiver of the interest u/s. 220(2) of the I T Act citing severe cash crunch and losses incurred in the previous years and further added that pa3mient of interest u/s. 220(2) will have huge hardship to their financial outflow and beyond their ability due to present financial conditions.

5.3 However, the assessee failed to furnish any documen-

tary evidence to substantiate with regard to applicability of the conditions mentioned in para 5.1 above. On perusal of the finan- cials, the assessee has not demonstrated how the payment of in- terest u/s. 220(2) would cause genuine hardship to the taxpayer whereas the assessee was able to clear all the demands except the 220(2) interest in spite of the financial crunch. Further, the assessee has also not furnished sufficient evidences to establish that there were circumstances beyond the control of the taxpayer such as natural calamity and any other similar factor. Also, it may be noted from Table in Para 4 that the assessee is a habitual defaulter as the default spreads over various financial years and the assessee has not at all paid dues on regular-basis. Thus, the assessee has not satisfied any of the stipulated conditions for waiver of interest u/s. 220(2). It is further observed that as on date of passing this order that the assessee has outstanding inter-

est arisen on account of delayed TDS remittances.

6. In view of the above and as submitted by the Assessing Officer ^d duly endorsed by the Range Head, I am satisfied that the assessee has not satisfied the conditions prescribed i