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TMI Blog2008 (8) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the petition. 2. The petitioner is a house wife and earning through private tuitions. She voluntarily submitted the returns of income-tax for the assessment year 1985-86 to 1989-90 on October 25, 1989. The returns were submitted in good faith. There was no prior notice under section 139(2) or 148 or 142(1) of the Act received by the petitioner. On the date of submission of her returns, she disclosed full and true income. She was unable to file the returns earlier as she was not aware of the provisions of the Act. Anyhow, voluntarily and in good faith she submitted the returns. She rendered co-operation to the Income-tax Department during assessment proceedings. She paid the requisite tax also. The returns were duly accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or payable under sub-section (8) of section 139 or section 215 or section 217 or the penalty imposed or imposable under section 273, if he is satisfied that such person- (a) in the case referred to in clause (i), has, prior to the issue of a notice to him under sub-section (2) of section 139, voluntarily and in good faith made full and true disclosure of his income ; (b) in the case referred to in clause (ii), has prior to the detection by the Assessing Officer, of the concealment of particulars of income or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure of such particulars ; (c) in the cases referred to in clause (iii), has, prior to the issue of a noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances, no interference in writ jurisdiction is called for. We find it difficult to accept this contention. Once the conditions required for exercise of discretion in any judicial or quasijudicial proceedings are satisfied, exercise of discretion cannot be either arbitrary or capricious and has to be judicious and objective. When the power is given to a public authority for being used for the benefit of a class of persons and the conditions precedent for the exercise are well defined, there is a duty to exercise such power and on failure to per-form that duty, courts are not only empowered but are duty bound to interfere. In the instant case, refusal to exercise discretion is for no other reason than misconception of the scope of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; payment or satisfactory arrangement for payment of tax or interest payable in consequence of an order passed with respect to the relevant assessment year . . . The Division Bench of this court in the case of Laxman v. CIT [1988] 174 ITR 465 had also an occasion to deal with the interpretation of section 273A of the Act, wherein the Division Bench observed that the most important facet of section 273A is furnishing of return in respect of income voluntarily and in good faith with full and true disclosure of particulars thereof. According to the Division Bench 'voluntary' means 'without compulsion'. Secondly, according to the Division Bench though 'good faith' is not defined under the Act, considering the definition given under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, is applicable to the assessment year 1989-90 onwards. The case of the petitioner, therefore, is in no way affected by the said amendment as the returns pertain to years 1985-86 to 1988-89. 13. The Supreme Court judgment, as cited by the leaned counsel appearing for the respondent, in Addl. CIT v. I. M. Patel and Co. [1992] 196 ITR 297 (SC), deals with section 271(1)(a) of the Act which provides that reasonable cause for delay in filing the return needs to be explained by the assessee. That was not a case of filing of the return voluntarily and in good faith. In that case, the assessee was unable to explain the delay in filing the return. The facts and circumstances, therefore, are quite distinct and distinguishable. The second jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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