Apex Finance and Leasing Ltd. vs Commissioner of Income Tax, Delhi and Others

Special leave granted.

This appeal is directed against the order dated March 25, 1992, of the High Court of Delhi in C.W.P. No. 1178 of 1992, dismissing the writ petition filed by the appellant against the order passed by the Commissioner of income tax u/s 273A of the income tax Act, 1961 (for short, "the Act"), refusing to waive interest and penalty on the amount; voluntarily disclosed by the assessee by way of revised return, without entering into the merits on the ground that the order was not liable to interference in extraordinary jurisdiction.

Having heard learned Counsel for both the parties, we are of the opinion that the question whether the Commissioner of income tax, in the facts and circumstances of the case, was justified in refusing to exercise his power u/s 273A of the Act was a question which was required to be examined on the merits. Therefore, without expressing any opinion on the merits of the controversy, we set aside the order of the High Court and send the case back for decision afresh in accordance with law on that merits. The petition shall be restored to its original number. Parties shall be at liberty to exchange affidavits. The appeal is decided accordingly.