Law:

Section:

Section 273A of the Income-tax Act, 1961 - Penalty - Reduction or waiver of - Assessment year 1971-72 - Whether proceedings under section 273A are of quasi-judicial nature and, therefore, order passed under it must be supported by reasons - Held, yes - Whether where Commissioner rejected assessee's application for waiver of penalty on ground that same was not covered by provisions of section 273A but did not give any reason for rejection of said application, order of Commissioner was liable to be quashed - Held, yes (case remanded back) Words and phrases : Word 'discretion' as occurring in section 273A of the Income-tax Act, 1961. FACTS Pursuant to a notice under section 143(2) issued to the petitioner, the petitioner filed a written application to the Commissioner making a disclosure of the net wealth and also made a prayer that the amount of money disclosed by him be spread over the assessment years 1964-65 to 1972-73. Soon thereafter the assessment orders were made and a penalty was levied. After amendment of section 271(4A) by the Taxation Laws (Amendment) Act, 1975, the petitioner filed an application under section 273A to the Commissioner on the ground that as he had voluntarily and in good faith filed returns before the ITO and got the assessment made on himself, the penalty imposed on him should be waived. The Commissioner, however, rejected said application on the ground that the same was not covered on provisions of section 273A. In the instant writ petition, the petitioner challenged the order of the Commissionerinter alia, on the ground that the order of the Commissioner was quasi-judicial, therefore, being not a speaking one it was invalid. HELD What is involved in a judicial process is well settled. A quasi judicial decision involves the following three elements: (1)It is in substance a determination upon investigation of a question by the application of objective standards to facts found in the light of pre-existing legal rules; (2)it declares rights or imposes upon parties obligations affecting their civil rights; (3)the investigation is subject to certain procedural attributes contemplating an opportunity of presenting its case (to a party). In…

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