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Issues: Interpretation of section 273A(3) of the Income-tax Act, 1961
In this case, the High Court of Karnataka considered an appeal against the order of a learned single judge in a writ petition regarding the interpretation of section 273A of the Income-tax Act, 1961. The Commissioner of Income-tax had limited the relief under section 273A(1) to specific assessment years, contrary to the application filed by the assessee covering a broader range of assessment years. The key issue was the scope of section 273A(3) and whether the assessee could seek relief for multiple assessment years in one application. The court analyzed section 273A of the Act, which deals with the power to reduce or waive penalties in certain cases. Section 273A(1) outlines the circumstances under which penalties can be waived, while section 273A(3) restricts the relief available after an order has been made under subsection (1). The court emphasized the language of section 273A(3), particularly the provision that the assessee shall not be entitled to any relief under the section in relation to any other assessment year after the making of such order. The court disagreed with the Commissioner's interpretation, highlighting that the order under section 273A(1) can relate to one or more assessment years. The court emphasized that the language of section 273A(3) does not prohibit the consideration of one application for multiple assessment years. Citing a decision of the High Court of Allahabad, the court emphasized that the power under section 273A(1) can be exercised for more than one assessment year and that the discretion lies with the Commissioner to decide the extent of penalty waiver based on the facts of the case. Ultimately, the court held that since the assessee had filed one application for multiple assessment years, the Commissioner was not justified in limiting the relief to specific years. The court agreed with the learned single judge's decision to quash the Commissioner's order and dismissed the appeal, affirming that the application should be considered once for all the relevant assessment years under section 273A of the Act.
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