M.H.S.ANSARI J. - (1.) THE petitioner -assessee has questioned the order of the CIT (Central), Hyderabad, passed under s. 220(2A) of the IT Act, 1961 (for short "the Act"), rejecting the waiver petition filed by the petitioner.
(2.) INTEREST is payable by the assessee, if the tax, as demanded, is not paid within the specified period. Waiver of interest for the asst. yr. 1996 -97 amounting to Rs. 4,25,69,676 charged under s. 220(2) of the Act for the period from
(3.) UNDER sub -s. (2A) of s. 220 of the Act, power has been conferred upon the Chief CIT or CIT to reduce or waive the amount of interest paid or payable by an assessee under sub -s. (2) of the Act, if the CIT is satisfied that : (i) payment of such amount (has caused or) would cause genuine hardship to the assessee; (ii) default in the payment of the amount on which interest (has been paid or) was payable under the said sub -section was due to circumstances beyond the control of the assessee; and (iii) the assessee has co -operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him. A bare perusal of the above provisions contained under sub -s. (2A) of s. 220 of the Act would show that the discretion conferred upon the CIT to waive or reduce interest is circumscribed by the three conditions extracted supra.;