Court limits relief under section 273A to one assessment year, stresses equal treatment for all applications.

The court clarified that once relief is granted under section 273A for one assessment year, the assessee cannot seek further relief for another year. The court emphasized that all applications, whether filed separately or together, should be treated equally during the consideration process by the Commissioner. The petition was allowed, directing the Commissioner to reconsider the application for the year 1986-87 and quashing the previous order that disallowed it. The matter was remitted for fresh consideration in accordance with the law.

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Issues:
1. Interpretation of section 273A of the Income-tax Act, 1961 regarding waiver or reduction of interest.
2. Application of sub-section (3) of section 273A in relation to multiple assessment years.
3. Consideration of multiple applications filed by the assessee for different assessment years.

Analysis:
The judgment by S. RAJENDRA BABU J. deals with the interpretation of section 273A of the Income-tax Act, 1961, specifically focusing on the waiver or reduction of interest leviable under sections 139(8), 215, and 217 of the Act. The petitioner, an assessee, filed applications seeking relief under section 273A for different assessment years. The Commissioner disposed of the applications through a common order, granting waiver for one year but not considering the applications for another year based on sub-section (3) of section 273A.

The court referred to the decision in Ram Sarandas Har Swaroop Mal v. CIT, where it was held that once relief is granted under section 273A for one assessment year, the assessee cannot seek relief for another year. However, the court clarified that the bar under sub-section (3) is applicable only after the order is made, not before. Therefore, the Commissioner erred in refusing to consider the application for the assessment year 1986-87 based on this provision.

The court rejected the Department's argument that filing separate applications on different dates should be treated differently, emphasizing that once the power is exercised by the Commissioner, it cannot be re-exercised. The court highlighted that filing a common application for different years should not affect the consideration process, and all applications should be treated equally. Consequently, the petition was allowed, directing the Commissioner to reconsider the application for the year 1986-87 and quashing the previous order that disallowed it. The matter was remitted to the Commissioner for fresh consideration in accordance with the law.

In conclusion, the judgment clarifies the application of section 273A of the Income-tax Act, emphasizing that once relief is granted for one assessment year, the assessee cannot seek further relief for another year. It also underscores the importance of treating all applications equally, whether filed separately or together, during the consideration process by the Commissioner.

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