TMI Blog1994 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... e above voluntarily disclosed income. The Income-tax Officer did not accept that the import licence was sold for Rs. 3,00,000 and he estimated the profit on sale of yarn and made additions in profit and investment said to have been made in the disposal of import licences. He estimated the income at Rs. 11,14,179. On appeal, the Appellate Assistant Commissioner reduced the said amount to Rs. 7,21,438. The order passed by the Appellate Assistant Commissioner was confirmed by the Tribunal. Thereafter, the Inspecting Assistant Commissioner passed an order dated August 3, 1976, under section 271(1)(c) imposing penalty of Rs. 11,02,000. The Tribunal reduced the penalty to Rs. 7,92,820. The petitioner paid the amount of penalty and interest over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of penalty and, therefore, there is no genuine hardship caused to the assessee, cannot be said to be a valid reason for rejection of an application under section 273A(4). By considering the scheme of section 273A and, particularly sub-section (4), it is apparent that if the penalty which is imposed is paid, it would definitely indicate that the assessee has co-operated in the proceeding for recovery of any amount due for him and it would be a factor which is required referring to sub-section (4) of section 273A which empowers the Commissioner to reduce or waive the amount of penalty payable by the assessee. Sub-section (4) reads as under: " 273. (4) Without prejudice to the powers conferred on him by any other provision of this Act, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recedent for exercise of quasi-judicial power under section 273A(4) are the two objective criteria mentioned in clauses (i) and (ii) and not whether the assessee has or has not paid the penalty. As observed by the Division Bench of this court in the case of Smt. Kherunissa Allibhai v. CIT [1978] 113 ITR 443, the whole concept under section 273A is the mitigating circumstances or certain circumstances are specified in the section for the purpose of getting the penalty waived or reduced: when the assessee approaches the Commissioner under section 273A, he does not dispute his liability to pay the penalty; all that he says is that he should be given the relief of reduction or waiver by the fact that the conditions specified in section 273A are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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