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2005 (7) TMI 89 - HC - Income TaxWaiver of interest and penalties Commissioner of Income-tax by his order granted relief only for the assessment years 1980-81 and 1981-82 and declined to grant relief for all other assessment years, by merely mentioning that the conditions for waiver are not satisfied for other assessment years. - In the instant case there was one application for several assessment years, hence the Commissioner of Income-tax ought to have granted relief for all assessment years and not restricted to only two assessment years. - Hence we hold that the petitioner is entitled to waiver of interest and penalty for the assessment years 1982-83 to 1986-87, accordingly the respondents are directed to grant such a relief to the petitioner
Issues:
Petition for waiver of interest and penalties for multiple assessment years under section 273A of the Income-tax Act, 1961. Analysis: The petitioner filed a petition seeking waiver of interest and penalties for various assessment years under section 273A of the Income-tax Act, 1961. The Commissioner of Income-tax granted relief for only two assessment years, citing that the conditions for waiver were not satisfied for the other years. However, section 273A(3) of the Act states that once relief is granted for one or more assessment years, no further relief can be provided for any other year. The provision allows for relief for any number of assessment years in one order but prohibits subsequent reliefs. In this case, since the petitioner applied for multiple assessment years in one application, the Commissioner should have granted relief for all years, not just two. Therefore, the High Court held that the petitioner is entitled to the waiver of interest and penalties for the assessment years 1982-83 to 1986-87. The court directed the respondents to grant the relief accordingly, making the rule absolute. This judgment clarifies the interpretation of section 273A and emphasizes that relief can be granted for multiple assessment years in one order under the provision, ensuring consistency and fairness in the application of waiver of interest and penalties.
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