Law:

Section:

Section 273A, read with section 271(1)(c) of the Income-tax Act, 1961 - Penalty - Reduction or waiver of - Assessment years 1972-73 and 1973-74 - ITO imposed penalty upon assessee for late filing of return and for not furnishing estimate of advance tax payable in accordance with provisions of section 212(3) - On assessee's application under section 273A, Commissioner refused to waive penalty on basis that as assessee had agreed to higher assessment and as he did not maintain proper accounts, it would mean that he had no intention of disclosing income correctly and that disclosure of income was neither full nor complete, nor was it made in good faith - Commissioner, however, did not go into question whether excess of income assessed over that disclosed by assessee could be said to be his concealed income or income particulars whereof had been wrongly given - Whether since Commissioner did not give any reason as to why he considered that excess of income assessed over and above that returned by assessee, amounted to its being concealed income or income particulars whereof had been inaccurately furnished, matter had to go back to Commissioner for being decided afresh - Held, yes (Matter remanded) FACTS The petitioner assessee carried on business in country liquer. During the relevant assessment years, he filed returns disclosing its income. However, it revised its return for the assessment year 1973-74 and disclosed higher income than before. In due course, the ITO finalised the assessment of the petitioner at higher amount and directed that notices be issued to the petitioner to show cause as to why penalty under section 271(1)(a) for late filing of the return for the year 1972-73 and that under section 273(b) for not paying the advance tax for the years 1972-73 and 1973-74 be not imposed. Eventually, as the ITO was not satisfied that there was any reasonable cause for the petitioner not to file its income-tax return for the year 1972-73 within time, he imposed upon him certain penalty. Likewise as he was not satisfied that there was any reasonable cause for the petitioner for not furnishing an estimate of the advance tax payable by him in accordance with the…

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