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Judgment
C.N. Ramachandran Nair, J.—Petitioner is challenging Ext. P3 order whereunder the Chief CIT has granted only partial waiver of interest demanded u/s 220(2) of the IT Act for belated payment of tax. It is seen that petitioner dragged the payment of tax for the asst. yr. 1978-79 for several years by contesting the assessment. The liability remained uncleared for nearly 20 years and when there was an outstanding demand of Rs. 5,70,000 and odd towards interest dues after adjusting payments made, the petitioner approached this Court and this Court vide Ext. P2 judgment dt. 25th March, 1999, granted stay against recovery on payment of further sum of Rs. 1.5 lakhs with direction to the respondents to reconsider the balance liability. Petitioner thereafter filed waiver application u/s 220(2A) of the Act and on that application the Chief CIT issued Ext. P3 order. The interest demanded u/s 220(2) is only interest for delayed payment and there was no provision to waive the said interest until 1984 when Section 220(2A) was introduced. Strictly speaking, petitioner may not be entitled to waiver of interest based on later amendment as the arrears of tax is due from 1978-79, onwards. In any case, it is seen that under the general powers conferred u/s 119(2A) of the Act the Chief CIT granted waiver of interest. Even though counsel for the petitioner vehemently contended that the relief granted is inadequate, on going through the order of the Chief CIT, I find, out of the total interest liability of Rs. 5,70,93 (sic) that too for admitted delayed payment of tax, the Chief CIT has accepted payment of Rs. 2,15,765 and waived the balance of Rs. 3,55,171. On the face of it I find Ext. P3 order is a very liberal order which calls for no interference by this Court because the Chief CIT has waived around 60 per cent of the interest payable under the statute.
In the circumstances, O.P. is devoid of any merit and is dismissed.