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Issues:
Challenge to order dated September 11, 1991 under sections 154, 220(2A), and 273A of the Income-tax Act, 1961 for waiver of interest and penalties. Analysis: The petitioner challenged the order dated September 11, 1991, which was passed on the application under section 154 read with sections 220(2A) and 273A of the Income-tax Act, 1961. The petitioner, Sangram Singh Mehta, faced a demand for tax, interest, and penalty for the assessment year 1966-67. The petitioner sought waiver of interest under sections 217 and 220 of the Income-tax Act due to financial constraints. The Commissioner of Income-tax, Jaipur, agreed to consider the waiver sympathetically based on the petitioner's cooperation with the Department, as per the communication dated March 29, 1988. The petitioner deposited the required amount in cash on March 30, 1988, following the instructions in the communication, awaiting the formal order for waiving the penalty and interest. The petitioner submitted applications under section 154 and moved fresh applications on January 20, 1989, seeking withdrawal of the earlier rejected orders dated January 3, 1989. The subsequent order dated September 11, 1991, refused to set aside the earlier orders, stating no assurance was given by the Department. The petitioner contended that the Commissioner did not consider the March 29, 1988, order while passing the September 11, 1991, order, leading to the challenge of the latter. The High Court found that the September 11, 1991, order was erroneous as it did not reference the March 29, 1988, communication from the Commissioner of Income-tax. The court directed setting aside the September 11, 1991, order and remanded the case to the Commissioner of Income-tax, Jaipur, to reconsider the petitioner's applications in light of the facts surrounding the March 29, 1988, communication and subsequent actions by the petitioner, including the cash deposit made based on the assurance given. Therefore, the writ petition was allowed, and the order dated September 11, 1991, was set aside, with a directive to reevaluate the petitioner's applications considering the relevant facts and communications regarding the waiver of penalty and interest on the tax amount.
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