1991 (9) TMI 10 - HC - Income Tax

Summary

Issues:
- Writ petition for a writ of certior arified mandamus to quash proceedings refusing waiver of interest and penalty under sections 139(8), 217, and 273(b) for assessment years 1972-73, 1973-74, and 1974-75.

Analysis:
The petitioner filed a writ petition seeking to quash the respondent's decision refusing to grant waiver of interest and penalty under sections 139(8), 217, and 273(b) for specific assessment years. The petitioner disclosed income for multiple assessment years and paid taxes accordingly. However, interest and penalties were imposed by the Income-tax Officer, which led to the petitioner requesting a waiver based on section 273A of the Income-tax Act, 1961. The respondent partially allowed the waiver for certain years but denied it for others, citing non-compliance with section 273A(1)(iii)(c). The petitioner argued that the tax paid exceeded the assessed amount, and penalties should be waived due to genuine disclosure and immediate tax payment. The respondent contended that compliance with section 273A(1)(iii)(c) conditions was necessary for waiver eligibility. The court analyzed the case, emphasizing that tax liability for each year is distinct, and compliance with statutory conditions is crucial for penalty waiver. The court held that non-payment of admitted tax for certain years precluded waiver eligibility, irrespective of calculation errors or good faith. Ultimately, the court dismissed the writ petition, upholding the respondent's discretion in denying the waiver based on statutory requirements.