2002 (6) TMI 7 - HC - Income Tax

Waiver of penalty - interference with the orders passed under section 273A From a perusal of these orders it would appear that the ground taken by the assessee of the delay in filing of returns being attributable to the Central Bureau of Investigation having seized the account books does not appear to be a tenable and convincing ground so as to justify waiver of the penalty and interest. It is noted in the assessment order that the assessee was not found to be maintaining books of account. It was discovered in the survey carried out that the assessee was not maintaining books of account. Rather the delay in filing is stated to be on account of making the accounts at its own convenience. As regards the seizure of books of account by the Central Bureau of Investigation it is urged that if the assessee was earnest he could have obtained inspection of the seized books and records and taken details and filed returns. - Moreover in view of the limited scope of interference with the orders passed under section 273A of the Income-tax Act 1961 no ground is made out to interfere in the exercise of writ jurisdiction.

Summary

The High Court of Delhi dismissed the writ petition regarding waiver of penalty and interest for delay in filing returns. The court found that the delay was not due to the Central Bureau of Investigation seizing account books, but rather the assessee's own convenience in maintaining accounts. The court stated that there was no grounds for interference in the orders passed under section 273A of the Income-tax Act, 1961. The judgment was delivered by Justice Manmohan Sarin.