SATISH CHANDRA, C.J. - (1.) THESE three writ petitions raise common questions. They are all directed against an order of the Income Tax Officer, Kanpur dated October 30, 1975, dismissing a revision filed by the petitioners u/s. 264 of the Income Tax Act, refusing to waive or reduce the interest imposed upon the petitioners for late filing of the return as well as u/s. 217(1) of the Act, for failure to file the requisite estimate of income.
(2.) IT appears that the petitioners premises were raided on October 18, 1973 and the books of account for the current year beginning April 1, 1973, were seized. The last date for filing of the return in the ordinary circumstances for the year 1974 -75 and July 31, 1974. It appears that the petitioners applied for inspection of the account books which had been seized by the Department. This prayer was allowed. The petitioners also applied for extension of time for filing of the return which prayer was also acceded to. Ultimately, the petitioners filed a return of income on November 30, 1974 disclosing an income of Rs. 4,10,317/ -. It seems that initially the petitioners wanted to disclose an income of Rs. 60,317/ - but ultimately in accordance with an oral settlement with the Commissioner of Income Tax the actual return filed was for Rs. 4,10,317/ -. This return was accepted and the Income Tax Officer passed an assessment order on its basis.
(3.) IN due course, the petitioners received a notice of demand. Under it, in addition to demand of tax, the Income Tax Officer had charged interest u/s. 139(8) for late filing of the return as well as for failure to file estimate u/s. 217(1) of the Act. Aggrieved, the petitioners filed a revision u/s. 264 of the Act. By the impugned order, the revision was dismissed. The Commissioner held that the raid was conducted on October 18, 1973, the assessee was always free to inspect his books of account and to extract the necessary information. The assessee had sufficient time to prepare the accounts and file the return in time. He did not see any reason for waiving or reducing the penalty of Rs. 23,866/ -.;