9911796707
TMI Blog1985 (9) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner filed an estimate showing a total income of Rs. 50,000. The tax payable on the said amount was Rs. 13,000. The return of income for the assessment year 1975-76 should have been filed by the petitioner on or before July 30, 1975. The petitioner, however, filed the return on September 15, 1976. The return showed a total income of Rs. 59,290. The petitioner did not pay the income-tax due under the said return. He paid a sum of Rs. 18,000 as self assessment tax on November 23, 1977. The petitioner also had earlier paid an advance tax of Rs. 753. The assessment order in respect of the said year was passed oil March 2, 1978. While completing the assessment, the Income-tax Officer levied interest under sections 217, 139(8) and 220(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has not co-operated in the payment of taxes. " He said that all the conditions for waiver of penalty and interest are not satisfied and hence he rejected the petition. Section 273A of the Income-tax Act, 1961, deals with power to reduce or waive penalty in certain cases. Under this section, the Commissioner in his discretion has the power to reduce or waive, inter alia, penalties imposable under section 271(1)(a) of the said Act as also under section 273(a). A similar power is given to the Commissioner also to reduce or waive the amount of interest payable under section 139(8) and section 217 of the said Act. This section, however, provides that this reduction or waiver will be granted if the Commissioner is satisfied, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various acts which invite penalties and interest is, in effect, tantamount to a refusal to exercise discretion without any valid reason. The question of exercising discretion will arise only when there are circumstances which invite imposition of interest and penalty. In such cases, looking to the conduct of the assessee and other relevant circumstances, the Commissioner has to decide whether he should exercise his powers under section 273A or not. In the present case, this has not been done. Mr. Devadhar, learned advocate for the respondents, pointed out that under section 273A of the Income-tax Act, 1961, the petitioner should have paid the full amount of interest levied before asking for the benefit of section 273A. The petitioner, how ..... X X X X Extracts X X X X X X X X Extracts X X X X
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