SUJATHA RUBBERS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) At issue in this writ petition is the legality of the order passed by the Commissioner of Income-tax, Visakhapatnam, dated 5/10/1989, respondent No. 2 herein, under section 273A of the Income-tax Act, 1961, dismissing the application of the petitioner herein, a partnership firm carrying on business in Vijayawada, represented by its managing partner, for waiver of interest in respect of the assessment years 1982-83, 1983-84 and 1984-85 : "since the conditions of section 273A(1) are not satisfied."

(2.) The Government of India introduced a scheme called amnesty scheme to encourage assesses to file returns voluntarily assuring them that no penal action for concealment of income would be initiated if returns were filed as laid down in the scheme. The said scheme was in force from 15/11/1984 to 31/03/1987. On Ma 27/03/1986, during the currency of the amnesty scheme, the petitioner for the assessment years 1982-83, 1983-84 and 1984-85 were completed by the first respondent, Income-tax Officer, D-Ward, Circle-II, Vijayawada, and he levied interest in respect of the completed assessments under sections 139 (8) and 217 of the Income-tax Act as detailed below : @@ -------------------------------------------------------------------- Assessment Date of completion Interest under Interest under year of assessment section 139(8) section 217 -------------------------------------------------------------------- (Rs.) (Rs.) 1982-83 25-3-1987 6,310 6,794 1983-84 25-3-1987 5,648 2,688 1984-85 25-3-1987 4,719 6,041 -------------------------------------------------------------------- 16,677 15,528 --------------------------------------------------------------------@@

(3.) Contending that no penalties were impossible in respect of the returns filed under the amnesty scheme, the petitioner preferred appeals to the Deputy Commissioner of Income-tax (Appeals), Vijayawada, who, by his order dated 29/11/1989, allowed the appeals and directed cancellation of penalties. We are informed by Shri S. R. Ashok, learned standing counsel for the Income-tax Department, that against the appellate orders of the Deputy Commissioner dated 29/11/1989, the Department has preferred appeals to the Income-tax Tribunal and the same are now pending. Simultaneously, while pursuing the remedy by way of appeals in relation to the levy of penalties, the petitioner made an application on 17/06/1987, before the second respondent, Commissioner of Income-tax, for waiver of interest under section 273A of the Act. That application was dismissed by the Commissioner holding :