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TMI Blog1973 (12) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "). The Income-tax Officer, for the assessment years 1958-59 and 1959-60, finally assessed the assessee on 29th March, 1967. The total income assessed was Rs. 1,01,712 and Rs. 98,035, respectively. Penalty proceedings under section 271(1)(a) and 271(1)(c) of the Act was also initiated for both the years. The assessee then moved a petition in April, 1967, before the Commissioner of Income-tax for settlement of his tax liability for various years, including the assessment years 1958-59 and 1959-60. The Commissioner called for a report from the Inspecting Assistant Commissioner of Income-tax, Range-C, Amritsar, and on receipt of his report the Commissioner conveyed his decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income-tax has desired that you may please explain the above position to the assessee and seek his agreement. The assessee's reaction to the above proposal may then be communicated to this office. " The assessee conveyed his acceptance of the decision to the Income-tax Officer, vide annexure " C " dated 14th January, 1969, and annexure " H-3 ", dated 16th January, 1969. Annexure " H-3 " relates to the matter of penalty. An application was made by the assessee to the Commissioner of Income-tax wherein in paragraph (10) thereof it is stated as under: " That in the circumstances, pointed out above, it is prayed that the file of the assessee may be summoned, the assessee may be heard through his counsel and assessment made may be reopene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The scheme of the section is this : that sub-section (1) creates three offences in clauses (a), (b) and (c) and penalty for them is provided in clauses (i), (ii) and (iii). Sub-section (4A) of section 271 of the Act deals with the powers of the Commissioner and is in the following terms: " (4A) Notwithstanding anything contained in clause (i) or clause (iii) of sub-section (1), the Commissioner may, in his discretion (i) reduce or waive the amount of minimum penalty imposable on a person under clause (i) of sub-section (1) for failure, without reasonable cause, to furnish the return of total income which such person was required to furnish under sub-section (1) of section 139, or (ii) reduce or waive the amount of minimum pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year, the aggregate amount of such income for those years, exceeds a sum of five hundred thousand rupees, no order reducing or waiving the penalty shall be made by the Commissioner unless the previous approval of the Board has been obtained. Vide sub-section (4B) of section 271 of the Act, which is in the following terms, the order of the Commissioner is final: (4B) An order under sub-section (4A) shall be final and shall not be called in question before any court of law or any other authority. " It is not disputed that the power to levy penalties under section 271(1) of the Act lies with the Income-tax Officer except in the case of clause (c) where the amount of penalty sought to be levied exceeds Rs. 1,000. In that event, the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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