2009 (4) TMI 60

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....partnership firm and other two petitions are filed by the partners thereof. Admittedly, the partnership firm and the partners filed their respective Income-tax returns for the assessment years 1987-88 and 1988-89 on 7.2.1990. Therefore, it is clear that the income tax returns were submitted long after the due date. The assessees filed the returns making their own assessment of income and deposited the income tax accordingly. The Assessing Officer reported that the assessments were completed under Section 143(1) accepting the income returned by the assessees for both the years. Interest under Section 139(8) and under Section 217 was charged for both the assessment years. Similarly, the penalty as also levied under Section 271(1)(a) and under....

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....terest has ben charged under Sections 139(8) and 217 of the I.T. Act. 3. The learned Counsel for the petitioners contended that the conditions for waiver of penalty and the conditions for waiver of interest are the same in view of the provisions of Section 273A and if the explanation given by the petitioners for waiver of penalty was sufficient and if the conditions are satisfied for waiver of penalty, there could be no reason not to accept the explanation for waiver of interest. Section 273A(1), as it stood during the relevant period, reads as follows :- "273A(1) Notwithstanding anything contained in this Act, the Commissioner may, in his discretion, whether on his own motion or otherwise, - (i) reduce or waive the amount of penal....

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....d, and also has, in all the cases referred to in clauses (a), (b) and (c), co-operated in any enquiry relating to the assessment of his income and has either paid or made satisfactory arrangements for the payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year." Admittedly, the petitioners had submitted the income-tax returns voluntarily without any notice or any action being taken by the Income-tax Department and had also deposited the income tax as per their own assessment. As noted above, the Assessing Officer found the assessment correct and the returns were accepted without any objection. It shows that the petitioners had, in fact, co-operated in the assessme....

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..... The two conditions are that:(i) the assessee should have co-operated in any enquiry relating to the assessment of his income, and (ii) the assessee should have paid or made satisfactory arrangements for payment of tax or interest payable in consequence of an order passed in respect of the relevant assessment year. Thus, the condition regarding payment was common both for the purpose of waiver of penalty and for the purpose of waiver of interest. Whereas for the purpose of payment of penalty, the Commissioner came to the conclusion that the condition for payment of tax was satisfied, with respect tothe waiver of interest, he came to the conclusion that the very same condition was not satisfied.  Obviously, that discloses non-applicati....