Scope and applicability of new section 273A of Income tax Act, 1961.

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.... applicability of the new section 273A of the Incometax Act, 1961 and new section 18B of the Wealth Tax Act, 1957. The points raised in these references are clarified hereunder. 2. The provisions of section 273A(1) and (4) of the Incometax Act, 1961 would apply to all cases where an application for relief under the said provisions is made by the assessee on or after 1st October 1975. In cases fal....

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....er in respect of the application under section 273A(1). Where an order in respect of an assessment year has already been passed by the Commissioner under section 271(4A) the assessee may make a separate application for grant of further relief under section 273A(1) in respect of interest chargeable or charged under section 139(8) or 215 or 217 and penalty imposable or imposed under section 273. 4.....

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....he assessee, etc., are germane to the determination of such a question. A few illustrative cases which may constitute "genuine hardship" warranting relief under section 273A(4) of the Incometax Act, 1961, or 18B(4) of the Wealth tax Act 1957 are given below:- a) Where, having regard to the quantum of penalty and the financial condition of the assessee, the recovery of the penalty imposed would sp....

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....ing capacity. Such a case may well justify invoking the discretionary powers of the Commissioner either for staying the recovery of penalty or for reducing the quantum thereof. e) A case in which the assessee had been committing default for a number of years on account of bonafide belief that his assets do not call for filing a return under the Wealth Tax Act or where the default occurs on accoun....