TMI Blog1990 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... o 1974-75, the Income-tax Officer levied penalties under sections 271(1)(a), 271(1)(c) and 273(a) of the Income-tax Act. The petitioner has averred that there were heavy sales tax dues and the bankers of the petitioner also filed a suit for recovery against the petitioner-firm. Being in extreme financial difficulties, the petitioners filed a petition under section 273A(4) of the Income-tax Act before the Commissioner of Income-tax, Nagpur, in January, 1981, seeking waiver of the amount of penalties on the ground that the same would cause genuine hardship to the petitioner-firm. The Commissioner of Income-tax heard the representative of the petitioner and ultimately, by the impugned order dated March 31, 1982, was pleased to reduce the pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1978] 113 ITR 318 (Guj), S. Sannaiah v. CIT [1974] 95 ITR 435 (Mys) as also Shakuntala Mehra v. CWT [1976] 102 ITR 301 (Delhi). Shri Shelat, learned counsel appearing for the respondent, on the other hand, contended that the order is a reasoned order as required by the provisions of section 273A(4) of the Act. In fact, Shri Shelat contended that there is no obligation on the Commissioner of Income-tax to give detailed reasons. Shri Shelat in that behalf relied upon its judgments in Dr. Brij Mohan Bhargava v. CIT [1984] 150 ITR 300 (P H) and Sanyasi and Sons v. CIT [1979] 118 ITR 459 (Orissa). In Rasiklal Ranchhodbhai Patel v. CWT [1980] 121 ITR 219, a Division Bench of the Gujarat High Court was dealing with a case where an order un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us are substantially different. In Madhukar Manilal Modi v. CWT [1978] 113 ITR 318 (Guj), it is held that (headnote): " Where a power is vested in a public authority for the purpose of being used for the benefit of persons who are specifically pointed out, and the Legislature has prescribed the conditions upon which they are entitled to call for its exercise, if the conditions laid down for the exercise of discretion are satisfied, the authority cannot refuse to exercise the discretion. The authority is under a statutory duty to exercise the discretion. If there is omission to exercise discretion, inter alia, on account of the failure on the part of the authority to genuinely address itself to the matter before it or due to misconcept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prejudice to the powers conferred on him by any other provision of this Act, the Chief Commissioner or 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. " Thus, it is clear that a very wide discretion is given to the Commissioner either to red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t are specifically mentioned. In paragraph 4 of the order, the contention on behalf of the assessee is also referred to the effect that all the partners have become very old and they are eager to liquidate their liabilities before death. It mentions the argument that the firm and its partners were co-operative with the Department in payment of tax dues and that, therefore, the request was made that the penalties be waived completely. It is after mention of these arguments and facts that, in paragraph 5 of the order, the Commissioner has observed as under : "I have considered the submissions made by Shri Pincha, on behalf of the assessee. While the estimate of value of the properties by Shri Pincha is very low, its value may be at least ..... X X X X Extracts X X X X X X X X Extracts X X X X
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