TaxTMI 
TaxTMI 
1990 (2) TMI 88
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....tion 140A(3) of the Act was due in relation to return of income of Rs. 75,420 submitted on 31-7-1978 whereas payment was made only on 28-3-1985 in relation to revised return submitted on 4-3-1985 offering taxable income of Rs. 73,387. 2. In this case admittedly the assessee filed a return as stated above on 31-7-1978 and no tax under section 140A(3) of the Act was paid as statutorily provided on 24-2-1983, an ex parte assessment under section 144 of the Act was framed determining taxable income of Rs. 3,16,350 which apparently came to be cancelled because as per some settlement with the Department the assessee furnished taxable return of Rs. 73,387 on 4-3-1985 and on 6-3-1985 the income offered in the return of 4-3-1985 came to be accepted....
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.... and further that interest under section 139(8) of the Act was directed to be waived for all the years to the extent of 90% except for the assessment year 1978-79 for which year interest under the said sections came to be totally waived, cancelled the penalty vide para 4. The relevant portions of para 2 and para 4 are reproduced as follows : " 2 ........................................................................................................... That the assessee firm got no notice under section 140A(3) when ex parte assessment was framed. That the revised return was filed on 4-3-1985 and the assessment framed on 6-3-1985 there is no fault as the assessment has been framed within one month from the date of filing of revised return.....
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....aving regard to the facts of the case. The name is, therefore, accordingly cancelled and the appeal is allowed." 6. Before me, for the Revenue, Shri R.P. Kapur, D.R. made a short effective submission that on the facts as record the learned Dy. CIT(A) was in error in cancelling the penalty even after noticing and recording in para 3, the assessee's averments that certain interests under section 215/217 of the Act came to be waived by the Commissioner of Income-tax on the ground that it had taken 6 1/2, years to finalise the assessment. This factor in itself, he submitted, indicated that the Commissioner of Income-tax agreed for a settled assessment keeping in view the assessee's return of 31-3-1978 and also the fact that an exparte assessme....