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TMI Blog2004 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... she further filed her returns for the assessment years 1982-83, 1983-84, 1984-85, 1985-86 and declared her income in the sum of Rs. 50,000, Rs. 55,000, Rs. 60,000 and Rs. 9,910, respectively. On the basis of the aforesaid returns filed, she was assessed and the Assessing Officer levied interest and penalty with respect to the assessment years 1982-83 and 1984-85 details of which are not necessary for disposal of this petition except for the fact that penalties were levied on the assessee under section 271(1)(c) of the Act for the assessment years 1982-83, 1983-84 in the sum of Rs. 12,460 and Rs. 19,676 respectively. The said penalties imposed under section 271(1)(c) were subsequently, quashed and set aside by the Commissioner of Income-tax (Appeals), Pune, vide his order dated July 29, 1992. The petitioner on September 6, 1988, moved an application under section 273A of the Act for waiver of interest and penalty. The said application was heard by the Commissioner of Income-tax, who by his order dated November 3, 1992, rejected the said application holding that the income declared on estimate was without any basis and that no proof or details in support thereof was filed. He also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded therein. Statutory provisions: In order to appreciate the rival submissions it is necessary to have a look at the text of unamended sections 271(1)(c) and 273A(1) and the Explanation appended thereto. 271.(1) If the Income-tax Officer or the Appellate Assistant Commissioner or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person-. . . (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty,- . . . (iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccurate particulars of such income: Provided that, if in a case falling under clause (c), the amount of income (as determined by the Income-tax Officer on assessment) in respect of which the particulars have been concealed or inaccurate particulars have been furnished exceeds a sum of twenty-five thousand rupees, the Income-tax Officer shall not issue any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to attract the provisions of clause (c) of sub-section (1) of section 271. (2) Notwithstanding anything contained in sub-section (1),- (a) if in a case the penalty imposed or imposable under clause (i) of sub-section (1) of section 271 or the minimum penalty imposable under section 273 for the relevant assessment year, or, where such disclosure relates to more than one assessment year, the aggregate of the penalty imposed or imposable under the said clause or of the minimum penalty imposable under the said section for those years, exceeds a sum of one hundred thousand rupees, or (b) if in a case falling under clause (c) of sub-section (1) of section 271, the amount of income in respect of which the penalty is imposed or imposable for the relevant assessment year, or, where such disclosure relates to more than one assessment 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 under sub-section (1) shall be made by the Commissioner except with the previous approval of the Board. (3) Where an order has been made under sub-section (1) in favour of any person, whether such order relates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the said findings are tested on the touchstone of the text of section 271(1)(c) it would be clear that the said section gets attracted only if the assessee has concealed the particulars of income or furnished inaccurate particulars of such income. If the Commissioner of Income-tax (Appeals) recorded a categorical finding that the assessee has not concealed the particulars of her income and did not furnish inaccurate particulars of such income, then the Explanation to section 273A would get squarely attracted with full force and the deeming fiction contemplated therein will come into play. If that be so the deeming fiction will have to be given full effect. Based on this understanding, one has to reach the logical conclusion that full and true disclosure was made by the assessee. With this understanding of the provisions in question, if one turns to the findings recorded by the Commissioner while rejecting the application under section 273A(1) and examines the same on its own merits, the same cannot stand the scrutiny of law as understood and is liable to be quashed and set aside. Now, turning to the second shade of the submission advanced by Mr. Desai, without noticing the absen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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