SHANTI SARUP SHARMA Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a petition under articles 226 and 227 of the Constitution for quashing the orders dated March 25, 1996, and December 27, 1996, passed by the Commissioner of Income Tax under section 271A and 154 of the Income Tax Act, 1961 (for short, "the Act") respectively.

(2.) The petitioner owned certain agricultural lands. He received compensation from the Haryana Government on February 13, 1991, consequent upon the acquisition of his land. He also received interest for several years on the amount of compensation. He was liable to pay Income Tax on the interest income received by him for different years. The petitioner filed returns for different assessment years showing income from interest. The Assessing Officer completed assessments on August 31, 1992, under section 143(1) of the Act for the assessment years 1982-83 to 1988-89. The Assessing Officer also charged interest under sections 139(8) and 217 of the Act for the aforesaid assessment years aggregating to Rs. 2,30,881. The Assessing Officer levied penalty also for failure to furnish returns, without reasonable cause, under section 271(1)(a) of the Act.

(3.) The petitioner filed an application under section 273A of the Act before the Commissioner of Income Tax , seeking waiver of interest and penalty charged and levied for the aforesaid assessment years. The Commissioner granted relief to the extent of 50 per cent. only.