TMI Blog1998 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed a return showing a loss of Rs. 70,829 for the assessment year 1985-86. When the assessment proceedings were taken by the Income-tax Officer, the officer held that the gifts received by the petitioner totalling to Rs. 1,27,48,325 cannot be accepted by the Department as there were a number of contradictory statements by the donors. Further, the petitioner has filed a revised return offering the entire gift totalling to Rs. 1,27,48,325 as taxable income. The petitioner had also paid the taxes in full. It has also been pointed out that the revised return has been filed with a view to cooperate with the Department and settled the matter amicably. The petitioner is under the impression that the penalty leviable would be waived if the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e arrears. His net wealth according to the wealth-tax return is of Rs. 40,70,757. It has been also argued that if the amount of penalty was not waived, it would cause genuine hardship to the petitioner. The respondent has passed an order in P. 1543 (2-A)l of 1989-90 CENT-I, dated May 16, 1990, stating that the petitioner filed a revised return on November 30, 1987, only after certain statements from the donors were made available to him and the petitioner was not correct in stating that the gifts in question were offered as income to co-operate with the Department and it was only after the Department had proved that the contention of the assessee with regard to the gifts was false, and the petitioner disclosed the amounts as income in the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows : "Without prejudice to the powers conferred on him by any other provision of this Act, the Commissioner may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount, if he is satisfied that --- (i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case ; and (ii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for the recovery of any amount due from him." According to sub-section (4) of section 2 73A, if an application is made by an assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cised by the Commissioner irrespective of the assessee pursuing the remedies of appeal to the Appellate Assistant Commissioner or the Tribunal with or without success. Filing of a return is an act of the assessee and enquiry into the correctness of the return is made under section 142 of the Act. The question of disclosure of the correct income in the return is relevant for the purpose of levying penalty and not for the purpose of waiver or reduction of penalty. The expression 'full and true disclosure' is not incorporated in sub-section (4) of section 273A of the Act. The disclosure of true income need not be made in the initial return, but can be made in the revised return and on that ground, it cannot be said that the assessee has not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction or evasive tactics in concluding the assessment. In the above case, the order of the Commissioner was quashed and he was directed to pass fresh orders on the application of the assessee under section 273A for the relevant assessment years. Relying upon the above judgment, it could be said that in the present case also, there was no evidence to show that the assessee did not co-operate with the. Income-tax Officer in completing the assessment either by resorting to litigation and obstruction or by evasive tactics in completing the assessment. It also has to be seen that the Commissioner has brushed aside the various relevant and germane submissions put forward by the petitioner-assessee in support of his plea that non-exercise of po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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