1978 (2) TMI 96

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....there is advance payment under section 140A to the tune of Rs. 77,048. But while pronouncing the order of assessment the Income-tax Officer also levied what is called penal interest under section 217 and section 139(8) of the Act quantifying the interest at Rs. 7,795 and Rs. 21,000, respectively. The actual demand was, therefore, only for Rs. 34,397. Against the levy of penal interest under sections 217 and 139(8) of the Act, the petitioner filed a petition before the first respondent, who is the Commissioner of Income-tax, Kerala II, on the basis of section 273A of the Act. That petition was dismissed by exhibit P-3 order dated July 25, 1977. It is the validity of exhibit P-3 order that is challenged in this petition. To appreciate the c....

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....ssessment 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." The ground upon which the first respondent passed exhibit P-3 order rejecting the petitioner's claim is that the cumulative conditions laid down in the relevant provisions of section 273A have not been complied with. As far as the present case is concerned, the noncompliance relates to the condition " 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 " occurring in section 273A(1). The petitioner has no c....