1990 (9) TMI 53 - HC - Income Tax

Summary

Issues:
1. Challenge against the Commissioner of Income-tax's order under section 273A of the Income-tax Act.
2. Petitioner's voluntary disclosure and subsequent assessments.
3. Waiver of penalties under section 271(1)(a) for specific assessment years.
4. Penalties levied under section 271(1)(c) and interest amounts under sections 139(8) and 217.
5. Dismissal of petitioner's application for waiving penalties and interest amounts.
6. Commissioner's order dated January 22, 1975, and its implications.
7. Interpretation of the powers under section 273A(1)(c) for waiving interest amounts.
8. Decision to set aside the impugned order and remand the matter to the Commissioner for fresh consideration.

The High Court judgment pertains to a writ petition challenging the Commissioner of Income-tax's order under section 273A of the Income-tax Act. The petitioner, an individual, made a voluntary disclosure and filed returns for specific assessment years. The Income-tax Officer accepted some returns but issued notices for subsequent years, leading to penalties being levied on the petitioner. The Commissioner waived penalties under section 271(1)(a) for certain years but dismissed the petitioner's application for other years due to no penalties being levied. Subsequently, penalties under section 271(1)(c) and interest amounts under sections 139(8) and 217 were imposed, leading to the petitioner filing an application for waiving these amounts. The Commissioner's order dated January 22, 1975, was pivotal in this context.

The Commissioner dismissed the petitioner's application based on the premise that the issue was closed by the order dated January 22, 1975, which did not address the interest levied under sections 139(8) and 217. However, the High Court noted that penalties under section 271(1)(c) were imposed post the January 22, 1975 order, indicating that the matter was not conclusively settled. Furthermore, the interest amounts were not covered under the petitioner's initial application, as section 273A was the relevant provision for waiving interest, effective from October 1, 1975. The Court refrained from opining on the applicability of section 273A(1)(c) to interest amounts pre-October 1, 1975, leaving it open for the Commissioner to address if needed.

In light of the above, the High Court partially allowed the writ petition, setting aside the impugned order and remanding the matter to the Commissioner for a fresh review and lawful disposal. The Court emphasized that the Commissioner should reevaluate the application in accordance with the law. No costs were awarded, and the petitioner's counsel was directed to receive a certified copy of the order within a week upon payment of usual charges.