In force · As amended up to 2026-08
1[ 273A. Power to reduce or waive penalty, etc., in certain cases. —(1) Notwithstanding anything contained in this Act, the[2] [[3] *[4] [Principal Commissioner or Commissioner]] may, in his discretion, whether on his own motion or otherwise,—
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(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]
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if he is satisfied that such person—
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(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,
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and also has,[11] [in 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.
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(2) Notwithstanding anything contained in sub-section (1),—
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(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,
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).
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).
Source: India Code