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v. Commissioner of Income-tax*, Bombay FERDINO I. REBELLO AND D.G. KARNIK, JJ. WRIT PETITION NO. 428 OF 1996 SEPTEMBER 14, 2009 Section 273A of the Income-tax Act, 1961 - Penalty - Reduction or waiver of - Block assessment years 1970-71 to 1987-88 - Whether any disclosure made subsequent to seizure of incriminating material would be treated as not voluntary - Held, yes - Whether merely because assessee cooperated in deciphering documents, it would not mean that revenue authorities could not have deciphered same; test would be whether any incriminating material was found - Held, yes - Whether under section 273A(4), party applying must make out a case of genuine hardship and in absence of placing any material on hardship, assessee cannot be heard to complain that there was non-compliance by Commissioner in considering its case under section 273A(4) - Held, yes FACTS During search operations carried out in the premises of the assessees and their associates, certain shares/debentures / units, cash, ornaments and various incriminating documents including a diary were seized. There-after, an order was passed under section 132(5). The assessee filed an application under section 273A disclosing additional income. Thereafter, the group filed revised returns and paid annual tax on additional income disclosed in the revised returns for the assessment years 1970-71 to 1987-88. The assessment pursuant to revised returns was finalized by the department by accepting the disclosed income. The revenue authorities also imposed interest under section 139(8)/215/217 and penalties under sections 273 and 271(1)(c). The Commissioner rejected the assessee's application under section 273A(i) recording a finding that disclosure was not made voluntarily. The application under section 273A(4) was also dismissed on the ground that the assessees had not made out a case of genuine hardship. The assessees filed writ petition against orders of the Commissioner contending that they had made disclosure on the clear understanding from the concerned authorities that there would be no penal liability and penal interest, if any, would be waived off and on the basis of such assurance by the…

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