9911796707
TMI Blog1992 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of the petitioner that for the assessment year 1980-81, the Income-tax Officer, Circle II, Ward-E, Surat, passed an order dated March 30, 1982, under section 143(3) of the Income-tax Act. As per the said order, the assessee has posted a credit entry of Rs. 36,000 on Kartik Sud 3 of S.Y. 2035 in the name of R. T. Shah and Co. without there being any ledger account for the said party. In the order, it is mentioned that there is no such R. T. Shah and Co. Therefore, a show-cause notice was issued under section 143(2) of the Income-tax Act. The partner of the petitioner-firm could not explain the introduction of the amount of Rs. 36,000 and he admitted that it was a bona fide mistake. He also agreed that the said amount be added in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he challan of Rs. 6,825 and also by paying the penalty ordered. Lastly, it was prayed that the firm is sufficiently and pecuniarily penalised with the added tax and the interest thereon plus penalty. For the unexplained accounting mistake of omission of posting in the ledger one transaction, the firm and the partners have suffered severe financial punishment. Therefore, it was prayed that the penalty imposed under section 271(1)(c) of the Act be waived as it was a case of only a first mistake. As stated above, that application was rejected by respondent No. 1 without recording any reasons. At the time of hearing of the matter, learned counsel for the petitioner vehemently submitted that the order dated May 6, 1983, passed by respondent No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him." The aforesaid section enables the Chief Commissioner or Commissioner, if the conditions mentioned therein are satisfied, to reduce or waive the amount of any penalty payable by the assessee under the Act and it also empowers him to stay or compound any proceeding for recovery of any such amount. For passing an appropriate order, the authority is required to consider (a) the facts and circumstances of the case; (b) whether, by not granting the relief as provided in the subsection, it is likely to cause genuine hardship to the assessee ; and (c) whether the assessee has co-operated in the inquiry. The section further requires th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and law, the order passed by the Commissioner of Income-tax rejecting the petitioner's application without assigning reasons requires to be quashed and set aside and he is also required to be directed to decide the petitioner's application afresh in accordance with law. Considering the aforesaid law and the facts, as we set aside the order passed by the Commissioner of Income-tax rejecting the petitioner's application, till the petitioner's application is decided, the respondents are directed not to proceed further with the complaint filed against the petitioner for an offence punishable under section 276C or section 277 in relation to the assessment for the assessment year 1980-81 for which penalty has been imposed. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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