Scope of relief u/s 273A. - Income Tax - 1787/CBDT

INSTRUCTION NO. 1787/CBDT Dated: March 16, 1988 Sub-section (3) of Section 273A provides that where an order has been made under sub-section(1) in favour of any person, whether such order relates to one or more assessment years, he shall not be entitled to any relief under this section in relation to any other assessment year at any time after the making of such order. 2. In Board's letter F.No.281/30/76-IT(Inv.) dated 24.8.1978, the Ministry of Law's advice in respect of Section 273A was given. The interpretation given by Ministry of law was that section 273(A)(3) prohibits successive relief both under sub-section (1) and (4) of Section 273A in cases where an order has been made in favour of a person under sub-section (1) of Section 273A. 3. The aforesaid advice, however does not deal with the question as to whether it is open to the Commissioner to allow successive relief under Sub-section(4) in Section 273A if no order under Sub-section (1) of Section 273A was made in favour of the person. The Ministry of Laws advice on the question is as follows :- "In order that a person may be debarred from the successive relief under Section 273A, it has to be satisfied that he has already availed of the benefit under Sub-section (1) of Section 273A. If no relief has been granted under Sub-section(1), the bar imposed under Sub-section(3) will not be attracted for granting relief under Section 273A(4). No doubt, Sub-section (4) is part of Section 273A and as such the provisions of Sub-section(3) will be applicable even to the grant of relief under sub-section(4), but only in that contingency where relief under Sub-section 1(1) has already been availed of for any assessment year. If no relief has been availed of under Sub-section (1), Sub-section(3) cannot prohibit the successive relief under Sub-section(4). Independently, there is nothing in Sub-section(4) that successive relief cannot be granted under that provision. In the light of what has been stated above, we answer the question raised for our consideration in affirmative. (Advice of the Ministry of Law dated 20.10.1987)