High Court allows seeking relief under different clauses of the Income-tax Act, 1961 | Powers can be exercised from time to time

The High Court held that the exercise of power under one clause of section 273A(1) of the Income-tax Act, 1961 does not preclude seeking relief under other clauses. The court emphasized that powers conferred under any provision can be exercised from time to time, rejecting the Commissioner's argument that once a power is exercised under a specific clause, no further relief can be sought. The court also dismissed the oral application for a certificate to appeal to the Supreme Court, finding no substantial question of law of general importance. The judgment upheld the dismissal of the appeal.

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Issues:
1. Interpretation of section 273A(1) of the Income-tax Act, 1961 regarding waiver of interest and penalty.
2. Whether exercise of power under one clause of section 273A(1) precludes exercise of powers under other clauses.
3. Application for a certificate to appeal to the Supreme Court under articles 133 and 134A of the Constitution of India.

Analysis:
1. The case involved the interpretation of section 273A(1) of the Income-tax Act, 1961, specifically regarding the waiver of interest and penalty. The respondent-writ petitioner had filed a petition under section 273A of the Act seeking waiver of interest levied for certain assessment years. The Commissioner of Income-tax had initially waived the interest under one of the sub-clauses of section 273A(1) due to the assessee voluntarily filing returns and paying tax. Subsequently, when a notice for penalty was issued, the petitioner sought waiver of penalty under the same section, which was rejected by the Commissioner on the ground that once a power under a specific clause of section 273A(1) is exercised, no further relief can be sought under other clauses. The High Court held that the exercise of power under one clause does not preclude the exercise of powers under other clauses of section 273A(1).

2. The court analyzed whether the exercise of power under one clause of section 273A(1) would prevent the assessee from seeking relief under other clauses of the same section. The High Court, while relying on the provisions of section 14 of the General Clauses Act, emphasized that powers conferred under any provision can be exercised from time to time. It was noted that there was no legal basis to restrict the assessee from seeking relief under different clauses of section 273A(1) once a power had been exercised under one clause. The court also distinguished a previous decision of the Allahabad High Court, highlighting the differences in facts and the legal points involved in that case.

3. The Commissioner of Income-tax made an oral application for a certificate to appeal to the Supreme Court under articles 133 and 134A of the Constitution of India. However, the High Court found that no substantial question of law of general importance was involved in the case that needed to be decided by the Supreme Court. As a result, the oral application for a certificate to appeal was rejected, and the High Court upheld the judgment of the learned single judge, dismissing the appeal.

This detailed analysis of the judgment highlights the key issues of interpretation of statutory provisions, the application of legal principles, and the decision regarding the appeal to the Supreme Court.

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