Penal relief jurisdiction extends to penalties already imposed where statutory wording shows a broad, beneficial scope.

Section 271(4A) was construed as a beneficial, procedural provision giving the Commissioner power to reduce or waive penalty already imposed, not only penalties yet to be imposed, because the phrase "penalty imposable" and the express power to reduce indicated a wider scope. The later insertion of section 273A reinforced the same legislative policy by expressly allowing reduction or waiver after imposition, including in relation to earlier assessment years. As no limitation excluded pending or concluded penalty matters, the Commissioner had jurisdiction to entertain the assessee's application, and refusal to do so was unsustainable.

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Issues: Whether the Commissioner had jurisdiction to entertain an application for reduction or waiver of penalty already imposed before the insertion of section 271(4A), and whether the later section 273A supported such relief for earlier years.

Analysis: The power conferred by section 271(4A) was construed as relating not merely to penalties yet to be imposed, but also to penalties already imposed, because the expression "penalty imposable" and the accompanying power to "reduce" indicated a wider reach. The provision was treated as beneficial and procedural in character, warranting liberal construction. The later enactment of section 273A, which expressly empowered the Commissioner to reduce or waive penalty even after imposition, reinforced the same legislative policy of extending relief in appropriate cases, including for earlier assessment years. No limitation was prescribed that would exclude pending or concluded penalty matters from consideration.

Conclusion: The Commissioner had jurisdiction to entertain the assessee's application for reduction or waiver of penalty even though the penalty had been imposed before the insertion of section 271(4A), and the refusal to entertain the application was unsustainable.

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