9911796707
TMI Blog1998 (12) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... eived compensation from the Haryana Government on February 13, 1991, consequent upon the acquisition of his land. He also received interest for several years on the amount of compensation. He was liable to pay income-tax on the interest income received by him for different years, The petitioner filed returns for different assessment years showing income from interest. The Assessing Officer completed assessments on August 31, 1992, under section 143(1) of the Act for the assessment years 1982-83 to 1988-89. The Assessing Officer also charged interest under sections 139(8) and 217 of the Act for the aforesaid assessment years aggregating to Rs. 2,30,881. The Assessing Officer levied penalty also for failure to furnish returns, without reasona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had filed the returns voluntarily before the issuance of any notice to him, he was entitled to the benefit of waiver. He had made a full and true disclosure of his interest income received for different years. Compensation, enhanced compensation and interest were awarded on February 13, 1991. Returns were filed on March 31, 1992. The petitioner paid tax on the assessed income. The assessments were made by the Assessing Officer under section 143(1) of the Act, thus, accepting the interest income shown by the petitioner. Shri A. K. Mittal, learned counsel for the petitioner, has further argued that the petitioner could not have imagined, prior to the receipt of compensation, that advance tax should be paid and returns must be filed in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (April 1, 1991, to March 31, 1992) could at best be charged. The petitioner was not a regular assessee and the amount of compensation received by the petitioner was not taxable, being compensation received on the acquisition of agricultural land. Shri R. P. Sawhney, learned senior counsel for the respondents, has, on the other hand, argued that the petitioner was under a legal obligation to file returns of income for different years. He filed returns on March 31, 1992, though he had received compensation and interest from the State of Haryana on February 13, 1991. Thus, the petitioner took an unduly long time for filing the returns. The Commissioner, while deciding the petitioner's application under section 273A of the Act, gave reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the exercise of discretion are satisfied, the discretion must be exercised judiciously by taking into consideration all the relevant facts. Satisfaction for the exercise of discretionary power must be an objective satisfaction and not a subjective satisfaction. Section 273A does not confer absolute discretion upon the Commissioner to pass any order which he pleases to make. He is required to consider the application on the merits. If the conditions for the exercise of the powers are fulfilled, he is obliged to exercise the discretion in favour of the assessee. The Allahabad High Court in Naresh Kumar Gupta v. CIT [1983] 144 ITR 556, examined a matter under section 273A of the Act. It was noticed that the Commissioner had not recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payment of the tax or interest payable in consequence of an order passed under the Act in respect of the relevant assessment years." It is, thus, clear, that an assessee, while seeking waiver of interest and penalty, must show that he fulfilled all the conditions. These conditions are relevant for the exercise of discretion. The Supreme Court in Smt. Harbans Kaur v. CWT [1997] 224 ITR 418, had an occasion to examine a matter regarding waiver of penalty under section 18B of the Wealth-tax Act, which is analogous to section 273A of the Act, whereunder also a similar discretion has been conferred on the Commissioner for either reducing the penalty or granting waiver of the entire penalty. The discretion is to be exercised in a reasona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rs. 7,000. The assessee had voluntarily filed the wealth-tax returns before the issuance of any notice. The court, therefore, reduced penalty to 50 per cent. of what had been levied. On a consideration of the matter, emerging from the petitioner's pleas, it is found that the petitioner had received compensation and interest on February 13, 1991. He filed returns of income for the relevant earlier years on March 31, 1992. He, thus, took about a year for filing the returns. He was not a regular assessee under the Act. He was also not liable to pay income-tax on the amount of compensation. There is considerable force in the petitioner's plea that he could not anticipate the receipt of interest unless it was finally determined by the compet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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