- (1.) Heard learned Counsel on both sides. This civil appeal is filed by the Assessee.
(2.) In the present case, which is a case of block assessment covering period 1977-1978 to 1985-1986, the Assessee sought waiver of interest and penalty under Section 273A(1) of the Income Tax Act, 1961 ['Act', for short], which application was rejected by Commissioner of Income Tax, Patna.
(3.) The search took place on 15th February, 1985, at the business and residential premises of the Assessee. On 1st March, 1985, the Assessee made a voluntary statement under Section 273A of the Act. That application was made to Commissioner of Income Tax Calcutta, which had no jurisdiction to waive penalty or interest because the authority vested in the Commissioner of Income Tax, Patna. The matter ultimately reached Patna High Court. Two aspects arose for determination; one was on jurisdiction and the other on merits. On jurisdiction, the High Court held that it was a hyper-technical point raised by the Department. Accordingly, the Department's plea on lack of jurisdiction was rejected. That order has not been challenged by the Department. However, on merits, the High Court came to the conclusion that the Assessee had not made true and full disclosure and, consequently, the concerned Commissioner of Income Tax, Patna, was right in rejecting the application for waiver of penalty and interest under Section 273A of the Act. However, the Patna High Court did not discuss in what manner the Assessee was supposed to make true and full disclosure.;