2008 (8) TMI 525

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....s delivered by Anoop V. Mohta J.- The present petition is against an order whereby respondent No. 1 refused to exercise jurisdiction under section 273A of the Income-tax Act, 1961 (for short "the Act") for waiver of interest under sections 139(8) and 217 of the Act for the income-tax assessment years 1983-84 to 1985-86. 2. The petitioner being a co-owner received rental income from the prope....

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....n paragraph Nos. 7, 9, 11 and 13 as under (pages 43, 44 and 46) : "The Division Bench of the Bombay High Court in Laxman v. CIT  [1988] 174 ITR 465 (Bom) ; [1989] 75 CTR (Bom) has explained the scheme and purpose of the section in the following words (page 474) : 'On behalf of the respondent, it was contended that the power under section 273A of the Act is purely discretionary in charac....

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....amus can be issued directing the Commissioner of Income-tax to entertain the application and to proceed to exercise the discretion within the limits specified by law . . .' The Bombay High Court in Anand B. Apte v. CIT [2004] 270 ITR 581 (Bom) further observed that section 273A of the Act contemplates full and true disclosure made voluntarily and in good faith even though such a disclosure is m....

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....provides that such an assessee can apply for waiver of interest and penalty and accordingly applied also. Therefore, merely because the interest amount was not paid but complied with all other elements as required the rejection of application on that ground, in our view, is not correct. 5. The Department failed to prove that the application was filed only after service of notice. There is an af....