Law: Income Tax Act, 1961

Section: 273A

Income-tax---Penalty---Interest---Waiver or reduction of penalty or interest--­Commissioner of Income-tax must decide application for such waiver or rejection on merits---Rejection of application without application of mind is not valid---Indian Income Tax Act, 1961, S. 273A. Section 273A of the Income Tax Act, 1961, itself contains criteria in clauses (a), (b) and (c) appearing in subsection (1) thereof for recording satisfaction about existence of the conditions contained therein and taking a decision in the matter. Held, that, in the instant cases, there was no application of mind by the Commissioner of Income-tax to the requirements of section 273A. The rejections of applications under section 273A were not valid. JUDGMENT This petition has been filed challenging the order of the Commissioner of Income-tax (Annexure "G"), by which he has rejected the application of the petitioner for waiver of the penalty and interest filed under section 273A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). Section 273A in the relevant years read as under; "273A Power to reduce or waive penalty, etc. in certain-cases.---(1) Notwithstanding anything contained in this Act, the Commissioner may, in his discretion, whether on his own motion or otherwise- (i) reduce or waive the amount of penalty imposed or imposable on a person under clause (i) of subsection (1) of section 271 for failure, without reasonable cause, to furnish the return of total income which he was required to furnish under subsection (1) of section 139; or (ii) reduce or, waive the amount of penalty imposed or imposable on a person under clause (iii) of subsection (Z) of section 271; or (iii) reduce or waive the amount of interest paid or payable under subsection (8) of section 139 or section 215 or section 217 or the penalty imposed or imposable under section 273, if he is satisfied that such person- (a) in the case referred to in clause (i), has prior to the issue of a notice to him under subsection (2) of section 139, voluntarily and in good faith made full and true disclosure of his income; (b) in the case referred to in clause (ii), has prior to the detection by the Income-tax Officer,…

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