Petitioner entitled to waiver of interest & penalties for multiple years under Income-tax Act

The High Court held that the petitioner is entitled to the waiver of interest and penalties for the assessment years 1982-83 to 1986-87 under section 273A of the Income-tax Act, 1961. The court directed the respondents to grant the relief accordingly, making the rule absolute. The judgment clarified that relief can be granted for multiple assessment years in one order under the provision, ensuring consistency and fairness in the application of waiver of interest and penalties.

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Issues:
Petition for waiver of interest and penalties for multiple assessment years under section 273A of the Income-tax Act, 1961.

Analysis:
The petitioner filed a petition seeking waiver of interest and penalties for various assessment years under section 273A of the Income-tax Act, 1961. The Commissioner of Income-tax granted relief for only two assessment years, citing that the conditions for waiver were not satisfied for the other years. However, section 273A(3) of the Act states that once relief is granted for one or more assessment years, no further relief can be provided for any other year. The provision allows for relief for any number of assessment years in one order but prohibits subsequent reliefs. In this case, since the petitioner applied for multiple assessment years in one application, the Commissioner should have granted relief for all years, not just two.

Therefore, the High Court held that the petitioner is entitled to the waiver of interest and penalties for the assessment years 1982-83 to 1986-87. The court directed the respondents to grant the relief accordingly, making the rule absolute. This judgment clarifies the interpretation of section 273A and emphasizes that relief can be granted for multiple assessment years in one order under the provision, ensuring consistency and fairness in the application of waiver of interest and penalties.

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