666/CBDT.

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.... dated the 21st December, 1972, it was stated that the CIT is competent to exercise his power under Section 271 (4A) even after an officer subordinate to him has passed an order imposing or confirming the penalty. A question has arisen whether the pendency of appeal against order imposing penalty before the AAC. or Income Tax Appellate Tribunal is not bar for invoking the provisions of section 271 (4A) to the effect that the assessee should not have filed any appeal against the penalty order. The conditions stipulated under section 271 (4A) are entirely different from these stipulated under Section 271(1) warranting levy of penalty. The C.I.T. can, therefore, interfere under section 271 (4A) even during pendency of appeal. However, if the a....

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.... under section 271(4A), these considerations are not relevant. What the Commissioner of Income-tax is to see before considering the applicability of section 271(4A) is whether there has been prior detection by the Income-tax Officer and whether other conditions mentioned in that section are entirely satisfied. The question whether the penalty to be levied should be nil for something below the minimum by invoking section 271(4A) is a matter which is entirely within the discretion of the Commissioner or the Board as the case may be. In view of this, the Commissioner can been confirmed by an appellate authority. (iii) Can the Commissioner interfere under section 271 (4A) where the penalty order has already been confirmed by him or by the Addi....

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....d the petition under section 271(4A) in accordance with the Board's Letter F.No.1-33/68-IT(Inv) dated 29th September, 1969, inviting or accepting another application under Section 271(4A), would amount to reviewing his own orders. Is there any power to the Commissioner of Income-tax for such review? The question that has been raised is whether it would be open to the Commissioner to pass an order under section 271 (4A) after he had rejected an earlier application from the assessee under this section on the ground that he had no jurisdiction to entertain it, a penalty having already been imposed by the Income-tax Officer. The Ministry of Law to whom the matter was referred has advised that the general rule is that there is no inherent right....