IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION. ORIGINAL CIVIL JURISDICTION. ORIGINAL CIVIL JURISDICTION. WRIT WRIT WRIT PETITION No.411 of 1995. PETITION No.411 of 1995. PETITION No.411 of 1995. Kunjibihari Bajaj ..Petitioner. vs. B. Chakraborty, C.I.T. B.C. & Ors. ..Respondents. ..Respondents. ..Respondents. Mr Jitendra Jain i/b G.B. Kedia, Advocate for the Petitioner. Mr R. Ashokan, Advocate for the Respondents. CORAM: CORAM: CORAM: V.C. DAGA, V.C. DAGA, V.C. DAGA, AND AND AND J.P.DEVADHAR, J.P.DEVADHAR, J.P.DEVADHAR, JJ. JJ. JJ. DATED: DATED: DATED: 12TH JANUARY, 2009. 12TH JANUARY, 2009. 12TH JANUARY, 2009. P.C.:- P.C.:- P.C.:- 1. Heard the learned counsel for the Parties. 2. Perused the petitions. 3. This petition is directed against the order dated 27th October, 1994 under Section 273-A of the Income-tax Act, 1961 ("the Act" for short). 4. The factual matrix reveal that the assessee has filed application dated 10th June, 1991 under Section 273A of the Act for waiver of interest levied under Sections 139(2) and 148 of the Act for the assessment years 1984-85, 1985-86, 1986-87, 1987-88 and 1988-89 respectively. 5. After having heard the assessee, the Commissioner of Income-tax vide the impugned order waived the interest under Section 139 (2) and 273A (1) of the Act and penalty under Section 273(2)(b) of the Act except penalty levied under Section 271 (1) (a) of the Act the total of which constitutes Rs.2,33,162/-. 6. In the entire impugned order no reasons are to be found as to why penalties levied under Section 271 (1) (a) of the Act were decided not to waive by the Commissioner of Income-tax. The order does not give any indication for refusal to waive penalties. The order suffers from non-application of mind and also principles of natural justice. 7. The basic rule of law of natural justice requires recording of reasons in support of the order. The order has to be self-explanatory and should not keep the higher court guessing for reasons. Reasons provide live link between conclusion and evidence. That vital link is the safeguard against the arbitrariness, the passion and prejudice. The reason is a manifestation of mind of the adjudicator. It is a tool for judging the order under challenge. It gives opportunity to the court to see whether or not the adjudicator has proceeded on the relevant material and evidence. 8. The - considerations for waiver of penalty under Section 273 (2) (b) and 271 (1) (a) are almost identical. The revenue has not challenged the order to the extent it has waived penalties under Section 273 (2) (b) of the Act. Consequently, the order waiving penalties under Section 273 (2) (b) has become final and - conclusive. 9. In the above view of the matter, the petitioner on the same consideration would be entitled for waiver of penalties under Section 271 (1) (a) of the Act. The impugned order, thus, cannot stand to the scrutiny of law and is liable to be quashed and set aside and the penalties are liable to be waived. 10. Mr Ashokan has referred two judgments of this Court in the case of Purshottam Thackersey v. Purshottam Thackersey v. Purshottam Thackersey v. Anantarama Anantarama Anantarama Ayyar (1985) 154 ITR 395 and Rosamma Ayyar (1985) 154 ITR 395 and Rosamma Ayyar (1985) 154 ITR 395 and Rosamma Thomas Thomas Thomas v. Income-tax Officer and Anr (1994) 210 v. Income-tax Officer and Anr (1994) 210 v. Income-tax Officer and Anr (1994) 210 ITR ITR ITR 814. 814. 814. Both the judgments are not applicable to the facts of the case in hand. In both these judgments the Court has found that discretion has been exercised properly as such refused to interfere. But the fact that matter in the case in hand is altogether different as discussed herein above. 11. In the result, petitions are allowed in terms of prayer clause (a) to (d). Rule is made absolute. No order as to costs. (J.P.DEVADHAR,J) (J.P.DEVADHAR,J) (J.P.DEVADHAR,J) (V.C.DAGA,J.) (V.C.DAGA,J.) (V.C.DAGA,J.)