JUDGMENT R.K. Agrawal, J.
1. By means of the present writ petition filed under Article 226 of the Constitution of India, the petitioner, Ratan Lal Agrawal, seeks the following reliefs:
(A) issue a writ, order or direction in the nature of certiorari quashing the impugned order dated August 31, 2000, (annexure 15), passed by the Commissioner of Income-tax, Agra, respondent No. 1;
(B) issue a writ, order or direction of a suitable nature commanding/directing respondent No. 1 to grant full waiver of interest under Section 220(2A) of the Income-tax Act, 1961, amount to Rs. 4,33,071;
(C) issue such other writ, orders or directions as this hon'ble court may deem fit and proper under the facts and circumstances of the case ;
(D) award costs to the petitioner.
2. Briefly stated, the facts giving rise to the present petition are as follow:
A huge income-tax demand was created for the assessment years 1972-73 to 1987-88. Interest was also charged. After giving full effect to the appellate and revisional orders, the demand was reduced as a consequence of which the interest amount of Rs. 16,94,592 was reduced to Rs. 10,57,877 which became payable by the petitioner. The petitioner moved an application under Section 220(2A) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for waiver before the Commissioner of Income-tax, Agra. The Commissioner of Income-tax, Agra, vide order dated March 14,1997, had found that all the three conditions mentioned in Clauses (i) to (iii) of Sub-section (2A) of Section 220 of the Act have been fulfilled by the petitioner. However, he waived the entire amount of interest except a sum of Rs. 4,33,071. The order dated March 14, 1997, was challenged by the petitioner by means of Civil Miscellaneous Writ Petition No. 453 of 1997 before this court, which was disposed of vide judgment and order dated April 19,1999. This court has upheld the discretion of the Commissioner to either reduce the amount or to waive it. However, it remanded the matter to the Commissioner to pass a fresh order relating to Rs. 4,33,071 after hearing and giving an opportunity to the petitioner and carefully considering the submissions of the petitioner in the matter. Pursuant to the directions given by this court, the Commissioner heard the matter and by order dated August 31, 2000, has waived the entire amount of interest except a sum of Rs. 4,33,071 which, according to him, represents the amount of interest paid by the Department under Section 244(1A) of the Act in respect of delayed refund for the assessment years 1972-73 and 1974-75 to 1982-83. The order dated August 31, 2000, is under challenge in the present writ petition.
3. We have heard Sri Shakeel Ahmad, learned Counsel for the petitioner, and Sri A.N. Mahajan, learned Counsel appearing for the respondents.
4. Sri Shakeel Ahmad, learned Counsel for the petitioner, submitted that it is not in dispute that the Commissioner of Income-tax, Agra, in his order dated March 14, 1997, had found that the petitioner fulfilled all the three conditions laid down in Section 220(2A) of the Act and, therefore, the Commissioner ought to have exercised the discretion in a judicial manner. According to him, the reason given for reducing the amount of interest payable by the petitioner to Rs. 4,33,071 is no reason in the eye of law and, therefore, the impugned order is liable to be set aside.
5. Sri A.N. Mahajan, learned Counsel for the Revenue, submitted that even upon all the conditions as laid down in Sub-section (2A) of Section 220 of the Act having been fulfilled, it is open to the Commissioner to either waive the entire amount of interest or reduce the amount. It is not incumbent upon him to waive the entire amount once all the three conditions are fulfilled. He further submitted that this court in its judgment and order dated April 19, 1999 had negatived this very plea advanced by the petitioner and, therefore, the power of the Commissioner to reduce the amount of interest upon fulfilling the conditions stands acknowledged. He further submitted that as the petitioner had received a sum of Rs. 4,33,071 from the Department, the Commissioner of Income-tax, Agra, was fully justified in reducing the amount of interest payable by the petitioner except the aforesaid amount.
6. We have given our anxious consideration to the various pleas raised by learned Counsel for the parties.
7. It is well settled that under Sub-section (2A) of Section 220 of the Act, upon the conditions being fulfilled, the Commissioner has the power either to reduce or waive the amount of interest. It is not correct to say that the moment the three conditions enumerated are fulfilled, the only power left with the Commissioner is to waive the amount of interest. Even this court in its judgment and order dated April 19, 1999, in the writ petition filed by the petitioner had negatived the similar plea advanced by the petitioner's counsel, which order has become final and binding between the parties. Thus, the Commissioner can either reduce or waive the interest depending upon the circumstances.
8. So far as the merits are concerned, we find that it is not in dispute that the petitioner has received a sum of Rs. 4,33,071 as interest on delayed refund. The liability of the petitioner towards interest on delay in deposit of taxes due is very much there. If the Commissioner of Income-tax has taken this into consideration regarding the sum of Rs. 4,33,071, it cannot be said that the Commissioner has acted on irrelevant or extraneous consideration. The order dated August 31, 2000, passed by the Commissioner, therefore, does not suffer from any legal infirmity.
9. The writ petition lacks merit and is dismissed.