NEERAJ DYEING Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India the petitioner, a partnership-firm seeks the quashing of an order dated January 20, 1986, passed by the Commissioner of Income-tax, Agra, whereby he rejected the petitioner's application under Section 273A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the waiver or reduction of penalties levied under Section 271(1)(c) and Section 273 of the Act.

(2.) I have heard Sri Vikram Gulati, learned counsel for the petitioner, and Sri Shekhar Srivastava, learned standing counsel for the respondents. No counter-affidavit has been filed on behalf of the respondents.

(3.) AFTER the completion of the assessments and the levy of penalty the petitioner moved an application under Section 273A before the Commissioner of Income-tax praying for the waiver/reduction of amounts of penalties under Section 271(1)(c) and Section 273. It is claimed that under Section 273A(4), the Commissioner has an overriding power to reduce or waive the penalty. Section 273A(4) reads as under :