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Power to reduce or waive penalty in certain cases - Section 273A - Income Tax - Ready Reckoner - Income TaxExtract Power to reduce or waive penalty in certain cases - Section 273A Notwithstanding anything contained in this Act, the commissioner may, in his discretion, reduce or waive the amount of penalty imposed or imposable u/s 270A or 271(1)(c) of the Act. Waiver may be suo moto or otherwise: This power can be exercised by the Commissioner on his own motion or on an application made by the assessee. Conditions to be satisfied for waiver/reduction: The Commissioner shall exercise this power if he is satisfied that The assessee has prior to detection by the Assessing Officer, of the concealment of particulars of income or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure of such particulars. The assessee has cooperated in any enquiry relating to the assessment of his income and The assessee has either paid or made satisfactory arrangements for the payment of tax and interest payable in respect of the relevant assessment year/years and Note 1:- If concealed income for various years for which application is made exceeds ₹ 5 lakhs, the Commissioner of Income-tax will take prior approval of Director General or Chief Commissioner. Note 2:- Order under section 273(1) can be made in favour of assessee once in his life time. Section 273A(4):- This Commissioner may, on an application made by the assessee and after recording his reasons for doing so, reduce or waive the amount of any penalty payable by the assessee under the Act if he is satisfied that: To do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case and The assessee has cooperated in any enquiry relating to assessment or any proceeding for the recovery of any amount due from him. Note:- Where the amount of any penalties exceed ₹ 1 lakh, no order under section 273A(4) shall be passed by the Commissioner without the prior approval of Chief Commissioner or Director General. Section 273A(4A):- The order under sub-section (4), either accepting or rejecting the application in full or in part, shall be passed within a period of 12 months from the end of the month in which the application under the said sub-section is received by the Principal Commissioner or the Commissioner. However no order rejecting the application the application, either in full or in part shall be passed unless the assessee has been given an opportunity of being heard. Further where any application is pending on 1-6-2016, the prder shall be passed on or before 31-5-2017. Note:- Every order made under this section shall be final and shall not be called into question by any court or any other authority. Interest u/s 234A, 234B or 234C cannot be wived or reduced by the Principal Commissioner or Commissioner u/s 273A.
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