Recording of satisfaction necessary for CIT before rejection of assessee’s application for waiver of Interest and Penalty

Shayama Sanjay Shah Vs CIT (Gujrat High Court) – Though it is true that powers under section 273A of the Act are discretionary powers, it is equally true that powers conferred under a statute are required to be exercised in consonance with the provisions of the said statute. In the present case, as discussed herein above, the Commissioner instead of recording satisfaction or otherwise in respect of the grounds prescribed under section 273A of the Act, has rejected the petition on irrelevant grounds, firstly, on the ground that there was no reasonable cause for failure in filing the retu...