HARI SHARAN SARRAF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this writ petition, the assessee is questioning the validity of an order passed by the Commissioner of Income-tax, Lucknow, on March 17, 1990, on a petition filed by the assessee under Section 273A of the Income-tax Act, 1961.

(2.) THE assessee is an individual. A raid under Section 132(1) of the Act was conducted at his business and residential premises on January 31, 1985. Taking advantage of Explanation 2 appended to Sub-section (1) of Section 273 A by the Taxation Laws (Amendment) Act, 1984, with effect from October 1, 1984 (which was omitted by the finance Act, 1985, with effect from May 24, 1985), the petitioner purported to make a disclosure of his concealed unaccounted income before the Commissioner within 15 days of the said raid. He submitted revised returns within the said period in respect of the assessment years 1976-77 to 1985-86. Having filed the said returns, the petitioner applied to the Commissioner under Section 273A to waive the penalties imposed upon him and placed strong reliance upon Explanation 2 aforesaid. This argument was rejected by the Commissioner by his order dated 17-3-1990, in the following words :

(3.) MOREOVER, it is necessary to clarify a certain aspect in this case. The petitioner applied for waiver of three types of amounts, namely, penalties imposed under Section 271(1)(c), penalties imposed under Section 273(1)(b) and the interest charged under Section 217. Explanation 2 to Sub-section (1) of Section 273A of the Act applies only to penalties levied under Section 271(1)(c), and not to penalties imposed under other provisions, much less to interest charged under Section 217 or for that matter under any other provision. This is evident from a reading of Explanation 2, which, as stated above, was introduced by the Taxation Laws (Amendment) Act, 1984, with effect from October 1, 1984, and omitted by the Finance Act, 1985, with effect from May 24, 1985 :