1974 (9) TMI 14

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....ommissioner under sub-section (4A) of section 271 of the Income-tax Act, 1961, for waiving the penalty. The Commissioner rejected this application. He stated that the assessee had filed a return of his income declaring it at Rs. 72,315. The Income-tax Officer had assessed the income at Rs. 85,011, which was ultimately reduced by the Tribunal to Rs. 79,873. There was thus a difference of Rs. 7,500 between the returned and the assessed income. He found that the assessee had included inadmissible items on the expenditure side and the transport account to the tune of Rs. 5,000. This was treated as inflated expenses. Ultimately, the Tribunal maintained an addition of Rs. 2,000 under this head. The Commissioner observed : " It would be impossi....

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....ith, made full disclosure of his income ; and in the case referred to in clause (ii) of this sub-section has, prior to the detection by the Income-tax Officer, of concealment of the particulars of income in respect of which the penalty is imposable, or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure of such particulars ; (b) has co-operated in any enquiry relating to the assessment of such income ; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year : ......... " Sub-clause (a) of the sub-section provides for tw....

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....observed that the words " full and complete " occurring in section 271(4A) do not cover a situation where additions are made to the returned income, was in error because, firstly, the words " full and complete " do not at all occur in the statute in relation to a default in filing the return within time. The only requirement is that the assessee has made full disclosure of his income. It appears that the Commissioner had in mind the latter portion of clause (a) where the requirement is full and true disclosure, when he observed that the relevant words are full and complete ; but, as seen, the term full and true disclosure has been used with reference to a default covered by clause (c) which is not the case here. In the present case it has b....