Law:

Section:

Section 273A of the income-tax act, 1961-Penalty-Commissioner's power to reduce or waive-Whether order of commissioner passed in exercise of powers under section 273A is valid where reasons for not wholly waiving penalty imposable under section 271(1)(a) or interest under section 217 have not been indicated-Held, yes Facts The petitioner applied to the Commissioner for waiver of penalty imposable under section 271(1)(a) and interest under section 217. In the order of the Commissioner passed in exercise of powers under section 273A, the Commissioner did not indicate reasons for not wholly waiving the penalty or interest. On writ, the petitioner contended that the failure to record reasons for not wholly waiving the penalty or interest rendered the order invalid. Held The Commissioner is given the discretion, when the requisite conditions envisaged by section 273A are satisfied, to waive or reduce the penalty or interest imposable under the given sections of the Act. However, even when the requisite grounds are made out for the exercise of discretion under section 273A, it is not incumbent upon the Commissioner to exercise his discretion to give relief and he does not have to give reasons either while declining relief or giving only partial relief. He has, however, to give reasons when he exercises his discretion in order to give relief. The Commissioner is not expected to give reasons as to why in a given case he has given only 1/4th, 2/3rd or 3/4th , relief. Therefore, the Commissioner was justified. Case review Travancore Rayons Ltd. v. Union of India AIR 1971 SC 862 distinguished. Case referred to Travancore Royons Ltd. v. Union of India AIR 1971 SC 862.. CIVIL WRIT PETITION NO. 1890 OF 1977 H.L. Sarin and M.L. Sarin for the Petitioner. Ashok Bhan and Ajay Mittal for the Respondent. JUDGMENT The petitioner, income-tax assessee, has impugned the order, Annexure P. 3, of the Commissioner passed in exercise of powers under section 273A of the Income-tax Act, 1961 ('the Act'), on the ground that the Commissioner did not indicate reasons for not wholly waiving the penalty imposable under section 271(1)(a) or interest under section 217 of the Act even though he has…

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