- (1.) BY this petition, the petitioner has prayed that the respondents be directed to quash the interest levied for delayed payment of tax.
(2.) THE petitioner is a religious charitable trust created by late Banku Behari Shah in the year 1925. By an application, Annexure A, petitioner prayed for waiver of interest levied under S. 31(2) of the WT Act, 1957. The prayer of the petitioner was rejected by the CWT vide impugned order, Annexure F on the ground that insertion of sub-s. (2A) has no retrospective effect in view of the decision reported in the case of Saurastra Agencies (P) Ltd. vs. Union of India (1990) 186 ITR 634 (Cal). The counsel for the petitioner submits that the amendment in S. 31 by insertion of sub-s. (2A) has a retrospective effect and the assessment years for which the interest has been charged is covered by this amendment. Therefore, interest may be waived. The counsel for the respondent submits that whether the amendment by insertion of sub-s. (2A) in S. 31 has retrospective effect or not has been considered by this Court in a judgment referred to above and the view has been taken that the amendment has no retrospective effect. He further brought to my notice the relevant portion of 149 ITR 70 (St.) wherein the intention of the legislature was clarified stating that this amendment in S. 31 shall take effect from 1st Oct., 1984.
(3.) BEFORE giving any direction to the CWT for waiver of interest, the petitioner has to satisfy that the amendment by insertion of sub-s. (2A) has a retrospective effect and secondly, the conditions under sub-s. (2A) for waiver of interest have been satisfied. Sub-s. (2A) of S. 31 read as under : "(2A) Notwithstanding anything contained in sub-s. (2), the Chief CWT or CWT may reduce or waive the amount of interest paid or payable by the assessee under the said sub-section if he 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 the amount due from him." ;