R.K. Gulati, J. - (1.) THIS writ petition is filed for issuance of a writ of certiorari against the order under Section 273A of the Income-tax Act, 1961, passed by the Commissioner of Income-tax, Meerut.
(2.) IN the assessment relating to the assessment year 1980-81, besides other additions, a sum of Rs. 50,000 was brought to tax as income of the petitioner from unexplained deposits." The INcome-tax Officer while completing the assessment also initiated penalty proceedings under Sections 271(1)(c) and 273(2)(a) of the Act. Although an appeal was filed by the petitioner against the addition made in its hands, it withdrew the appeal subsequently. After having done so, it approached the Commissioner of Income-tax with a petition under Section 273A for reduction and waiver of penalties imposable under Section 271(1)(c) and under Section 273(2)(a) of the Act. The petition under Section 273A of the Act was allowed in part inasmuch as the Income-tax Officer was directed to impose on the petitioner, minimum penalties leviable under the aforesaid two sections. Aggrieved by this order, the present writ petition has been filed on the ground that the Commissioner ought to have waived the penalties leviable in their entirety. It is not disputed before us that the provisions contained in Sub-section (1) of Section 273A of the Act are not applicable to the petitioner's case. The conditions required for the application of that sub-section are wanting and the petitioner cannot, with justification, ask for relief under those provisions. According to the petitioner, its case is covered by Sub-section (4) of Section 273A. These provisions are to the following effect: " (4) Without prejudice to the powers conferred on him by any other provision of this Act, the Commissioner may, on an application made in this behalf by an assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount, if he is satisfied that- (i) to do otherwise would cause genuine hardship to the assessee, having regard to the circumstances of the case ; and (ii) the assessee has co-operated in any enquiry relating to the assessment or any proceeding for the recovery of any amount due from him: Provided that where the amount of any penalty payable under this Act or, where such application relates to more than one penalty, the aggregate amount of such penalties exceeds one hundred thousand rupees, no order reducing or waiving the amount or compounding any proceeding for its recovery under this sub-section shall be made by the Commissioner except with the previous approval of the Board. "
(3.) BEFORE proceeding further, it is necessary to state some more facts. According to the petitioner, in withdrawing the appeal, it was prompted and motivated on account of a circular bearing No. 451 (F. No. 225/86/85-IT(A-II), dated February 17, 1986--[1986] 158 ITR (Statutes) 135), issued by the Ministry of Finance regarding declaration of higher income or wealth. The petitioner has annexed (vide annexure 1 to the writ petition) a copy of certain circulars and clarifications issued by the Central Board of Direct Taxes between September 20, 1985, to April 8, 1986. According to the petititioner's case, by means of these circulars and clarifications, it was given out that if a taxpayer discloses its current income and wealth correctly at a higher figure and from a source not earlier disclosed, no probe or enquiry shall be made as to why such income or wealth was not declared by the taxpayer in earlier years. Similarly, in respect of income and wealth undisclosed relating to the earlier years which ought to have been disclosed in the returns for earlier years, may be disclosed now by furnishing correct and complete disclosure of income or wealth by March 31, 1986. In such cases, the petitioner asserts, the taxpayers have been assured that there shall be immunity for them from imposition of any penalty or prosecution, if such declaration of income is made by March 31, 1986.;