9911796707
TMI Blog1998 (8) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... -88, the petitioner filed a return on 10th Nov., 1989 declaring a total income of Rs. 13,220. This was followed by a revised return filed on 16th March, 1990, disclosing an income of Rs. 1,26,220. The return was further revised by the petitioner on 22nd April, 1990, disclosing an income of Rs. 2,69,880. An amount of Rs. 1,09,190 was payable as tax on the income disclosed in the second revised return, as against which the petitioner paid along with the second revised return a sum of Rs. 1,02,180 only leaving a balance of Rs. 7,010 unpaid. The assessment was completed by the assessing authority under s. 143(3) and a demand for the balance amount of tax raised on 29th of March, 1990. The petitioner paid the balance amount on 13th of April, 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome and either paid or made satisfactory arrangement for the payment of tax or interest payable in consequence of an order passed under the Act. The argument was that whereas cl. (c) of s. 273A(1) required not only a voluntary disclosure made in good faith, but the deposit of the tax on the income so disclosed, the further requirement of the I assessee having paid or made satisfactory arrangements for the payment of any tax due in consequence of an order passed under the Act' implied that the payment of tax could be even in consequence of an assessment order made under the Act. The provision contained in s. 273A being a piece of beneficial legislation, argued the learned counsel, the same ought to be liberally construed and the benefit of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of penalty imposed or imposable on a person under sub-s. (8) of s. 139 or s. 215 or s. 217 or the penalty imposed or imposable under s. 273, if he is satisfied that such person; (a) (b) (c) in the case referred to in cl. (iii), has prior to the issue of a notice to him under sub-s. (2) of s. 139 or where no such notice has been issued and the period for the issue of such notice has expired, prior to the issue of notice to him under s. 148, voluntarily and in good faith made full and true disclosure of his income and has paid the tax on the income so disclosed; and also has, in the case referred to in cls. (a), (b) and (c) co-operated in any enquiry relating to the assessment of his income and has paid or made satisfactory a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn. The requirement that the assessee should have paid the entire amount due on the income disclosed can, therefore, be rightly held to be a condition precedent for the assessee to satisfy before he can invoke the power of reduction or waiver vested in the CIT. The words "either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act" appearing in s. 273A do not in my opinion bring about any conflict with the provisions of cl. (c) supra or create any anomaly. These words do not obviously refer to the amount of tax, which is payable by the assessee on the basis of the income disclosed by him. They refer to any amount other than the one, which is payable by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no conflict or anomaly between the provisions of cl. (c) and the remaining provisions so as to require any harmonisation by a process of interpretation. The two requirements, one under cl. (c) and the other regarding payment of tax or interest held payable in consequence of an order are independent of each other, both of which must be satisfied before the assessee can claim benefit of waiver or reduction. To the same effect is the view taken in B. Thangammal vs. CIT (1996) 131 CTR (Mad) 8: (1995) 215 ITR 261 (Mad) : TC 49R. 1037 and S.M. Ziaddin vs. CIT (1996) 131 CTR (Mad) 229: (1993) 203 ITR 136 (Mad) : TC 49R.995 by two Single Benches of the High Court of Madras. In the later of the said two decisions, the Court has observed thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aying the amount of tax due on the amount disclosed in the return cannot be made infructuous by holding that such a payment could as well have been made any time before the power to waive is invoked by the assessee. The rationale behind the requirement is to encourage proper payment of the amount of tax, which is according to the assessee's own showing due and recoverable from him. It only means that those who pay promptly can claim the benefit of waiver of interest also. An interpretation, according to which payment of even the admitted tax amount is not necessary till such time the power to reduce or waive the interest levied under ss. 139(8) and 217 is invoked will have the effect of negating the very purpose underlying the provision. An ..... X X X X Extracts X X X X X X X X Extracts X X X X
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