Section 273A:
Power to reduce or waive penalty, etc., in certain cases.
1(1) Notwithstanding anything
contained in this Act, the 23
***4
Principal Commissioner or Commissioner may, in his discretion,
whether on his own motion or otherwise,—
5
* * * * *
(ii) reduce or waive the amount of penalty imposed or imposable on a person under 6
section
270A or clause (iii) of sub-section (1) of section 271; or
7
* * * * *
if he is satisfied that such person—
8
* * * * *
(b) in the case referred to in clause (ii), has, prior to the detection by the 9
Assessing Officer, of
the concealment of particulars of income 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,
10 * * * *
and also has, 11in the case referred to in clause (b), co-operated in any enquiry relating to the assessment
of his income and has either paid or made satisfactory arrangements for the payment of any tax or interest
payable in consequence of an order passed under this Act in respect of the relevant assessment year.
Explanation.
12***—For the purposes of this sub-section, a person shall be deemed to have made full
and true disclosure of his income or of the particulars relating thereto in any case where the excess of
income assessed over the income returned is of such a nature as not to attract the provisions of
6
section 270A or clause (c) of sub-section (1) of section 271.
12* * * * *
(2) Notwithstanding anything contained in sub-section (1),—
13* * * * *
(b) if in a case falling under 6
section 270A or clause (c) of sub-section (1) of section 271, the
amount of income in respect of which the penalty is imposed or imposable for the relevant assessment
year, or, where such disclosure relates to more than one assessment year, the aggregate amount of
such income for those years, exceeds a sum of five hundred thousand rupees, no order reducing or waiving the penalty under sub-section (1) shall be made by 14
the 15
Principal
Commissioner or Commissioner except with the previous approval of the 16
Principal Chief
Commissioner or Chief Commissioner or 17
Principal Director General or Director General, as the case
may be.
(3) Where an order has been made under sub-section (1) in favour of any person, whether such order
relates to one or more assessment years, he shall not be entitled to any relief under this section in relation
to any other assessment year at any time after the making of such order:
18
Provided that where an order has been made in favour of any person under sub-section (1) on or
before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to
other assessment year or years if he makes an application to the income-tax authority referred to in subsection (4) at any time before the 1st day of April, 1992.
(4) Without prejudice to the powers conferred on him by any other provision of this Act,
the 1920
*** 15
Principal Commissioner or 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 inquiry relating to the assessment or any proceeding for
the recovery of any amount due from him:
21
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 14
the 15
Principal Commissioner or
Commissioner except with the previous approval of the 16
Principal Chief Commissioner or Chief
Commissioner or 17
Principal Director General or Director General, as the case may be.
22
(4A) The order under sub-section (4), either accepting or rejecting the application in full or in part,
shall be passed within a period of twelve months from the end of the month in which the application
under the said sub-section is received by the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be passed unless the
assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June, 2016, the order shall
be passed on or before the 31st day of May, 2017.
(5) Every order made under this section shall be final and shall not be called into question by any
court or any other authority.
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(6) The provisions of this section 24
as they stood immediately before their amendment by the Direct
Tax Laws (Amendment) Act, 1989 shall apply to and in relation to any assessment for the assessment
year commencing on the 1st day of April, 1988, or any earlier assessment year, and references in this
section to the other provisions of this Act shall be construed as references to those provisions as for the
time being in force and applicable to the relevant assessment year.
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(7) Notwithstanding anything contained in sub-section (6), the provisions of sub-section (1), subsection (2), or, as the case may be, sub-section (4) as they stood immediately before their amendment by
the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989), shall apply in the case of reduction or waiver
of penalty or interest in relation to any assessment for the assessment year commencing on the 1st day of
April, 1988 or any earlier assessment year, with the modifications that the power under the said subsection (1) shall be exercisable only by the 26
Principal Commissioner or Commissioner and instead of the
previous approval of the Board, the 26
Principal Commissioner or Commissioner shall obtain the previous
approval of the 27
Principal Chief Commissioner or Chief Commissioner or 28
Principal Director General
or Director General, as the case may be, while dealing with such case.
Notes:
1. Ins. by Act 41 of 1975, s. 64 (w.e.f. 1-10-1975).
2. Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988).
3. The words “Chief Commissioner or” omitted by Act 38 of 1993, s. 36 (w.e.f. 1-6-1993).
4. Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).
5. Clause (i) omitted by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989).
6. Ins. by Act 28 of 2016, s. 106 (w.e.f. 1-4-2017).
7. Clause (iii) omitted by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989).
8. Clause (a) omitted by s. 51, ibid. (w.e.f. 1-4-1989).
9. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. (1-4-1988).
10. Clause (c) omitted by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989).
11. Subs. by s. 51, ibid., for “in all the cases referred to in clauses (a), (b) and (c)” (w.e.f. 1-4-1989).
12. Explanation 2 omitted by Act 32 of 1985, s. 34 (w.e.f. 24-5-1985). . Earlier “1” and Explanation 2 was ins. by
Act 67 of 1984, s. 50 (w.e.f. 1-10-1984).
13. Clause (a) omitted by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989). Earlier clause (a) was amended by Act 67 of 1984,
s. 50 (w.e.f. 1-10-1984).
14. Subs. by Act 38 of 1993, s. 36, for “the Chief Commissioner or Commissioner except with the previous approval of the
Board” (w.e.f. 1-6-1993). Earlier the words “Chief Commissioner or Commissioner” were substituted by Act 4 of 1988, s.
, for “Commissioner” (w.e.f. 1-4-1988).
15. Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).
16. Subs. by s. 4, ibid., for “Chief Commissioner” (w.r.e.f. 1-6-2013).
17. Subs. by s. 4, ibid., for “Director General” (w.r.e.f. 1-6-2013).
18. Ins. by Act 49 of 1991, s. 69 (w.e.f. 27-9-1991).
19. Subs. by Act 4 of 1988, s. 2, for “Commissioner” (w.e.f. 1-4-1988).
20. The words “Chief Commissioner or” omitted by Act 38 of 1993, s. 36 (w.e.f. 1-6-1993).
21. The proviso added by Act 67 of 1984, s. 50 (w.e.f. 1-10-1984).
22. Ins. by Act 28 of 2016, s. 106 (w.e.f. 1-6-2016).
23. Ins. by Act 4 of 1988, s. 113 (w.e.f. 1-4-1989).
24. Ins. by Act 3 of 1989, s. 51 (w.e.f. 1-4-1989).
25. Ins. by Act 32 of 1994, s. 48 (w.e.f. -6-1994).
26. Subs. by Act 25 of 2014, s. 4, for “Commissioner” (w.r.e.f. 1-6-2013).
27. Subs. by s. 4, ibid., for “Chief Commissioner” (w.r.e.f. 1-6-2013).
28. Subs. by s. 4, ibid., for “Director General” (w.r.e.f. 1-6-2013).