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Issues:
1. Validity of penalty proceedings initiated by the Income-tax Department. 2. Interpretation of Explanation 2 to section 273A of the Income-tax Act. 3. Consideration of subsequent disclosure by the assessee in penalty proceedings. 4. Authority of the Commissioner to extend the period for disclosure. 5. Applicability of legal precedent in similar cases. Analysis: The petitioner, a jeweler, filed a writ petition challenging the order of the Commissioner of Income-tax and subsequent penalty proceedings initiated against him for failing to file a return for the assessment year 1984-85 on time. Despite voluntarily filing the returns later, the Income-tax Officer directed penalty notices under various sections. During a raid, unaccounted business and money were found, leading to the petitioner's request to scrutinize his accounts for proper disclosure. The Commissioner held that the subsequent disclosure made by the petitioner was beyond the permissible time limit and not a full and true disclosure as required under section 273A. The key issue revolved around whether the subsequent disclosure by the assessee could mitigate the penalty proceedings. The court emphasized that a full and true disclosure must be made within fifteen days of the search, as per Explanation 2 to section 273A. The subsequent disclosure made by the petitioner was deemed untimely and not meeting the statutory requirements. The court highlighted that the Commissioner lacked the authority to extend the disclosure period beyond what is stipulated in the law. In analyzing the case, the court distinguished it from previous judgments, clarifying that the provisions applicable in this instance did not grant the Commissioner the power to extend the disclosure deadline. The court cited the case of CIT v. M. Chandra Sekhar to illustrate the difference in provisions and the absence of authority for extension in the current scenario. Ultimately, the court concluded that the petitioner failed to establish grounds for court intervention, leading to the rejection of the writ petition at the admission stage.
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