The Supreme Court held that the provision for levy of interest for non-payment of tax within time, has to be interpreted by the principle of purposive construction and the same principle has to be applied for the purpose of determining whether any hardship has been caused or not. The ingredients of genuine hardship must be determined by the dictionary meaning thereof and the legal conspectus attending thereto. The Supreme Court then send the matter back to the Commissioner for fresh consideration in view of the findings of the Supreme Court.
As the department had failed to consider genuine hardship and the circumstances which were beyond the control of the Assessee which CIT having failed the consider, the matter was remitted to CIT to reconsider relating wavier of interest as per prov. Of Sec. 220(2A) afresh.
B. M. Malani vs. CIT (2008) 306 ITR 196 (SC)/ (2008) 219 CTR 313 (SC