Share |

[B] Power to Reduce or Waive Penalty, etc. in certain cases (Section 273 A)


The Income-tax Act has empowered the Chief Commissioner or the Commissioner to reduce or waive the penalty etc. in certain cases. Section 273 (1) says that notwithstanding anything contained in this Act, the Chief Commissioner or the Commissioner, may, at his discretion, whether on his own motion or otherwise, reduce or waive the penalty in the following cases

(a) The Chief Commissioner, or the Commissioner may reduce or waive the penalty leviable under Section 271 (1) (iii) for assessee’s failure to disclose all the facts and particulars of his income.

(b) The Chief Commissioner, or the Commissioner shall exercise power to reduce or waive the penalty only if he is satisfied that the assessee has disclosed all the facts of his income, before any detections made by the Assessing Officer, voluntarily and in good faith and he has made a true disclosure of all the relevant particulars.

The point to be noted in this connection is that the assessee must have co-operated in any inquiry 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.

Board’s permission [Section 273 A (2b)]. In the following cases, the Chief Commissioner, or the Commissioner has to seek Board’s permission before any order to reduce or waive the penalty is made by him if the amount of income in respect of which the penalty is imposed or imposable or


where such disclosure relates to more than one assessment year and then the aggregate amount of such income of those years, exceeds Rs. 5,00,000.
Get Updated ....
Tally.ERP 9 Book
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications