Section 273A - Power to reduce or waive penalty, etc., in certain cases

Penalty reduction allowed for voluntary income disclosure under Income Tax Act sections with approval limits

The statute empowers the Principal Commissioner or Commissioner to reduce or waive penalties under specified sections of the Income Tax Act if the taxpayer voluntarily and in good faith discloses concealed income before detection and cooperates in inquiries, having paid or arranged payment of due taxes or interest. For penalties exceeding specified monetary thresholds, prior approval from higher authorities is required. Relief granted for one assessment year precludes further relief for other years, with limited exceptions. The Commissioner may also reduce or waive penalties or stay recovery proceedings if refusal causes genuine hardship and the taxpayer cooperates, subject to approval for amounts exceeding a defined limit. Orders under this provision are final and not subject to judicial review. The section's provisions apply retrospectively to certain earlier assessment years with modifications in approval authorities.