C KRISHNASAMY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner in W. P. No. 12777 of 1992 is the husband and the petitioner in W. P. No. 12778 of 1992 is the wife. Both of them are practising the medical profession. THEy got a plot of land at Erode from the Tamil Nadu Housing Board and started construction of a nursing home at the plot at a cost of Rs. 7, 74, 000. THE construction was commenced in the year 1984 and was completed in 1986.

(2.) THE petitioners filed returns periodically stating that they were meeting the cost of construction from the savings out of the income earned from the profession. THEre was a survey by the income-tax officials at the nursing home, and at that time it was found that there were other incomes which had not been disclosed. THE petitioners then put forward a case that they got those monies by obtaining loans from relatives who were agriculturists. But they were not able to prove the same. According to the petitioners, it was suggested that they could file revised returns and, accordingly, they filed revised returns.

(3.) THE relevant part of the section itself reads that the Commissioner may, in his discretion, reduce or waive the amount of interest paid or payable under sub-section (8) of section 139 or section 215 or section 217 or the penalty imposed or imposable under section 273 of the Act. THE aid section has to be read along with sections 139(8) and 217 of the Act. Section 139(8) of the Act provides that, where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then, whether or not the Assessing Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2), the assessee shall be liable to pay simple interest at 15 per cent. per annum, reckoned from the day immediately following the specified date for the furnishing of the return.