MILLAN BONE MILLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE papers in connection with this writ petition were placed before us today for considering the prayer for interim relief. As the parties have exchanged their affidavits, learned counsel appealing for them requested that instead of considering the prayer for interim relief, we should hear and dispose of the petition itself on merits. We have accordingly heard counsel for both the parties on merits of the petition itself and are proceeding to dispose of the same.

(2.) BY this petition under art, 226 of the Constitution the petitioner prays that the order dated February 23, 1980, passed by the Commissioner Agra, refusing to waive/reduce the penalty and interest in exercise of powers under Section 273A of the I.T. Act, be quashed.

(3.) THE casts of the petitioner before us is that the Commissioner committed an apparent error in taking the view that in the instant case the requisite conditions laid down under Section 273A(1) of the I.T. Act for waiver/ reduction of penalties and charging of interest were not fulfilled inasmuch as the assessee had been a regular assessee assessed to tax since the assessment year 1969-70. A plain reading of Section 273A(1) shows that the conditions precedent for the exercise of discretion for waiver/reducing the penalty and charging of interest are that the Commissioner should be satisfied that the person making the claim :