NIGAM A C Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS writ petition is directed against the order dated March 30, 1982, passed by the Commissioner of Income-tax, Lucknow, rejecting the application moved by the petitioner under Section 273A of the Income-tax Act, 1961, for waiver of penalties and penal interest.

(2.) IT appears that the petitioner had not submitted his income-tax returns for the assessment years 1977-78, 1978-79 and 1979-80 at the appropriate time. He, however, submitted voluntary returns in respect of the assessment years mentioned above on July 31, 1980. The assessments were made by the Income-tax Officer on December 31, 1980. The assessment orders also provided for issue of notices under Section 271(1)(a) and Section 273(b) of the Income-tax Act for the three assessment years, namely, 1977-78, 1978-79 and 1979-80. The petitioner thereafter moved an application dated October 24, 1981, for waiver of penalty and interest on the ground that he had submitted returns voluntarily prior to the issue of notice and, therefore, was entitled for the benefit under Section 273A of the Income-tax Act. The application was rejected by the Commissioner of Income-tax as indicated earlier. A true copy of the order passed by the Commissioner of Income-tax has been filed as annexure-3 to the writ petition. The Commissioner of Income-tax has observed that enquiries were initiated on the basis of information received from A.D.M. (Development) in July, 1978, informing that the petitioner had received commission under the National Savings Scheme, A notice was issued on the basis of the above information addressed to Sri S.C. Nigam, 20 Cantonment, Lucknow, on November 15, 1979. Admittedly, the name mentioned in the notice was incorrect. Therefore, the notice was not served. A fresh notice with the correct name as Sri A.C. Nigam was again issued on December 19, 1980, i.e., much after the voluntary returns submitted by the petitioner on July 31, 1980. The Commissioner of Income-tax found that the returns submitted by the petitioner can neither be said to be voluntary nor in good faith as they were filed only after the notice had been issued by the Income-tax Officer in the name of S.C. Nigam. In substance, therefore, the conclusion drawn by the Commissioner of Income-tax was that the notice issued in the name of Sri S.C. Nigam was sufficient notice.

(3.) LEARNED counsel for the petitioner has also drawn our attention to the fact that the notice which was issued on December 19, 1980, and was served upon the petitioner was only in respect of the assessment year 1978-71), It was not in respect of the assessment of the other two assessment years, namely, 1977-78 and 1979-80. The learned Commissioner of Income-tax shall consider this aspect of the matter also while disposing of the matter afresh.