PLY KING Vs. CENTRAL BOARD OF DIRECT TAXES

JUDGEMENT

(1.) Heard learned counsel for the parties.

(2.) The present application has been filed for quashing the order dated March 12, 1991, as contained in annexure 10, passed by the Commissioner of Income-tax, Patna, rejecting the application filed by the petitioner for waiver of penalty and interest under Section 273A of the Income-tax Act (for short "the Act").

(3.) The facts, which are not in dispute, are that the petitioner is a partnership firm and on February 15, 1985, the premises of the firm and the residential house of one of its partners were searched under Section 132 of the Act. Admittedly, at that time, the jurisdiction to hear the application under Section 273A of the Act was with the Commissioner of Income-tax, Calcutta. However, on March 1, 1985, the petitioner filed a petition under the aforesaid Section before the Commissioner of Income-tax, Patna, stating that a number of books of account were seized at the time of search and the petitioner wanted to make full and true disclosure of all its income so that proper assessment could be made thereof right from the assessment year 1976-77 till the relevant period, i.e., the year of search. It was further prayed that in view of the fact that the petitioner was ready to make full and true disclosure, the petitioner might be exempted from payment of penalty, interest, etc. On June 6, 1985, the Central Board of Direct Taxes (for short "the Board"), transferred the jurisdiction to hear the matters under Section 273A of the Act from the Commissioner of Income-tax, Calcutta, to Patna, and, thereafter, on December 13/18, 1985, the Commissioner of Income-tax, Patna, sought for an information from the petitioner on the basis of the aforesaid application filed before him on March 1, 1985. On September 29, 1986, a notice was issued by the Commissioner of Income-tax, Patna, that the Patna office has no jurisdiction to hear the application filed on March 1, 1985, when the jurisdiction was conferred on it on June 6, 1985.