Full and true disclosure governs waiver of interest and penalty where revised shareholder details were not fully disclosed.

A waiver of interest and penalty under the Income-tax Act depends on full and true disclosure of the relevant facts, including a complete revised shareholder position where capital structure has changed. Here, the assessee's voluntary disclosure after issuing shares was found incomplete because it did not furnish the revised list of shareholders reflecting the reduced capital structure and the surrender of part of the receipt as income from undisclosed sources. The Commissioner's view that section 273A(1)(b) was not satisfied was held to be reasonable, and the writ court found no basis to interfere under Article 226. The material also attracted section 271(1)(c).

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Issues: Whether the Commissioner was justified in refusing waiver of interest and penalty on the ground that there was no full and true disclosure and whether the writ court should interfere under Article 226 of the Constitution of India.

Analysis: The assessee had made a voluntary disclosure after issuing shares, but the disclosure did not include a revised and complete list of shareholders reflecting the reduced capital structure after surrender of a substantial part of the receipt as income from undisclosed sources. Full particulars contemplated by section 273A(1)(b) would arise only when the revised shareholder position was disclosed. On the facts, the Commissioner's view that the assessee had not made complete disclosure was held to be neither unreasonable nor incorrect. The Court further held that, on the material on record, the matter also attracted section 271(1)(c) of the Income-tax Act, 1961.

Conclusion: The refusal to grant waiver was upheld, and no interference under Article 226 was warranted.

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