ALUKKAS JEWLLERY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A common question is involved in the nine writ petitions. That relates to the interpretation of S.273 A of the Income Tax Act, 1961, and in particular the scope and ambit of Explanation.2 thereof.

(2.) Three firms and their partners are involved as parties in these writ petitions. Two of the firms are engaged in jewellery business, Alukkas Jewellery, Trichur and Alukkas Jewellery, Calicut. The third firm runs a hotel, Alukkas Tourist Home. O.P. Nos. 5641, 5642 and 5643 are by the firms, Alukkas Jewellery, Calicut, Alukkas Tourist Home, Trichur and Alukkas Jewellery, Trichur respectively. Varghese and Joy are partners in the three firms referred to above. The six writ petitions are by the partners challenging orders passed by the Commissioner by which a request for waiving of interest under S.273 A, was turned down.

(3.) The background facts leading to the impugned orders are the following: The firms and their partners had been originally assessed to income tax. Final orders of assessment had been passed in respect of the period 1979-80 to 1983-84. It is conceded that the main income of the partners is the share income from the firms.