1991 (5) TMI 54

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....d 1981-82, the petitioner had filed returns of income late by 7 months and 20 months respectively. In addition to the levy of income-tax, the assessing authority levied penalty and interest for the late filing of the returns and for non-payment of advance tax. It appears that the petitioner filed an application to the Commissioner of Income-tax under section 273A seeking waiver of penalty and a....

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.... in the present case is that the discretion has not been exercised judicially by the Commissioner. It is contended by learned counsel that the catena of authorities shows that the jurisdiction which is exercised under section 273A has to be a judicial decision and there must be some reason for the Commissioner of Income-tax to justify the reduction only up to 50%. Learned counsel submits that, hav....

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....conditions being satisfied, the Commissioner of Income-tax shall waive the penalty and interest in its entirety. It is clear that the Legislature has left the discretion with the Commissioner of Income-tax and the Income-tax Commissioner is a high functionary and merely because the discretion is left with the functionary, it cannot mean that the said provision is arbitrary. The discretion, of c....

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.... can be no mathematical formula when discretion is to be exercised in determining as to how the discretion should be exercised. The exercise of the discretion must depend on the facts and circumstances of each case. It is apparent from the impugned order that the Commissioner of Income-tax has taken into consideration the extent of the delay in filing the returns or payment of advance tax. For the....