1992 (1) TMI 73 - HC - Income Tax

Summary

Issues:
Delay in filing income tax returns, levy of penalty and interest, application for waiver of penalty and interest, interpretation of section 273A of the Income-tax Act.

Analysis:
The petitioner, an individual with income from a partnership, faced penalties and interest for delayed income tax returns for various assessment years. The Income-tax Officer imposed penalties under sections 271(1)(a) and 273, along with interest under sections 139(8) and 217 for the years 1974-75 to 1976-77. Additionally, interest was levied for the year 1981-82 and 1985-86. The petitioner applied for waiver of penalties and interest under section 273A of the Income-tax Act for all the mentioned assessment years. The Commissioner of Income-tax, Vadodara, granted relief only for the first default year, 1974-75, stating that relief under section 273A could be given for only one assessment year.

The petitioner contended that the Commissioner had the authority to waive penalties and interest for multiple assessment years, not limited to just one year. The petitioner filed a petition seeking directions against the Commissioner, challenging the decision to grant relief only for 1974-75. The court referred to a similar case, where it was held that the Commissioner could waive penalties and interest for one or more assessment years under section 273A. The court concluded that the Commissioner erred in restricting the relief to only one year and directed the Commissioner to reconsider the petitioner's application for waiver of interest and penalties for the remaining assessment years, 1975-76, 1976-77, 1981-82, and 1985-86, in accordance with the law and the court's decision in the referred case.

Therefore, the court allowed the petition, instructing the Commissioner to review the petitioner's application for waiver of penalties and interest for the mentioned assessment years, following the court's interpretation of section 273A and the principles laid down in the referred case. The court ruled in favor of the petitioner, emphasizing that the Commissioner could consider and grant relief for multiple assessment years under section 273A, not restricted to just one year.