Scope of benefit u/s 273A(1). - Income Tax - 1823/1989

INSTRUCTION NO. 1823/1989 Dated: August 1, 1989 The question whether the benefit of sub-section (1) of section 273 A of the I.T.Act is available in a case for more than one assessment year, only when the disclosure for all the assessment years is made simultaneously on the same date and not when the disclosure for different years is made on different dates, was considered by the board in consultation with the Ministry of law. 2. The law Ministry's advice is reproduced below for your information: We do not agree with the department that the disclosures made by an assessee for different assessment years on different point of time can be considered by a single order by the commissioner for the waiving of the penalty etc. u/s.273 A. No doubt the cases relating to more than one assessment years can be considered and disposed of by a single order but disclosures made for different assessment years on different points of time cannot be clubbed together and disposed of by a single order. This will be against the objectives of the section that the benefits of section 273 A can be made available only once in the life time of the assessee. If an application is made by the assessee for different assessment years at one stretch of time, of course, the Commissioner may waive the penalty for one assessment year and may not say anything about other assessment year. The orders so passed shall be binding and shall be considered as has covered all the assessment years. The aforesaid view can be justified by the various conditions which are necessary for granting the waiver etc. under the section. One of the most important point is that the assessee must have disclosed voluntarily and in good faith. Thus disclosure is in singular and the section says only about the disclosure and not the disclosures. Similarly if an assessee is committing a default every now and then for different assessment years and approaches the commissioners for those defaults for different assessment years at different intervals the commissioner shall not be justified in clubbing those defaults and making a single order. This shall be against the spirit of section 273 A(1) of the Income-tax Act. This may please be brought to the notice of all officers working in your charge.