Income Tax Act, 2025
Section 10: Clause (c) omitted by Act 3 of 1989, s. 51 (w.e.f. 11989).
10. Clause (c) omitted by Act 3 of 1989, s. 51 (w.e.f. 11989).
11. Subs. by s. 51, ibid., for “in all the cases referred to in clauses (a), (b) and (c)” (w.e.f. 11989).
12. Explanation 2 omitted by Act 32 of 1985, s. 34 (w.e.f. 241985). . Earlier “1” and Explanation 2 was ins. by
Act 67 of 1984, s. 50 (w.e.f. 11984).
13. Clause (a) omitted by Act 3 of 1989, s. 51 (w.e.f. 11989). Earlier clause (a) was amended by Act 67 of 1984,
s. 50 (w.e.f. 11984).
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no order reducing or waiving the penalty under sub-section (1) shall be made by 1[the 2[Principal
Commissioner or Commissioner] except with the previous approval of the 3[Principal Chief
Commissioner or Chief Commissioner] or 4[Principal Director General or Director General], as the case
may be].
(3) Where an order has been made under sub-section (1) in favour of any person, whether such order
relates to one or more assessment years, he shall not be entitled to any relief under this section in relation
to any other assessment year at any time after the making of such order:
5[Provided that where an order has been made in favour of any person under sub-section (1) on or
before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to
other assessment year or years if he makes an application to the income-tax authority referred to in subsection (4) at any time before the 1st day of April, 1992.]
(4) Without prejudice to the powers conferred on him by any other provision of this Act,
the 6[7*** 2[Principal Commissioner or Commissioner]] may, on an application made in this behalf by an
assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable
by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount,
if he is satisfied that—
(i) to do otherwise would cause genuine hardship to the assessee, having regard to the
circumstances of the case; and
(ii) the assessee has co-operated in any inquiry relating to the assessment or any proceeding for
the recovery of any amount due from him:
8[Provided that where the amount of any penalty payable under this Act or, where such
application relates to more than one penalty, the aggregate amount of such penalties exceeds one
hundred thousand rupees, no order reducing or waiving the amount or compounding any proceeding
for its recovery under this sub-section shall be made by 1[the 2[Principal Commissioner or
Commissioner] except with the previous approval of the 3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Director General or Director General], as the case may be].]
9[(4A) The order under sub-section (4), either accepting or rejecting the application in full or in part,
shall be passed within a period of twelve months from the end of the month in which the application
under the said sub-section is received by the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be passed unless the
assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June, 2016, the order shall
be passed on or before the 31st day of May, 2017.]
(5) Every order made under this section shall be final and shall not be called into question by any
court or any other authority.]
1. Subs. by Act 38 of 1993, s. 36, for “the Chief Commissioner or Commissioner except with the previous approval of the
Board” (w.e.f. 11993). Earlier the words “Chief Commissioner or Commissioner” were substituted by Act 4 of 1988, s.
2, for “Commissioner” (w.e.f. 11988).
omitted by Act 3 of 1989, s. 51 (w.e.f. 11989).
11. Subs. by s. 51, ibid., for “in all the cases referred to in clauses
and
omitted by Act 3 of 1989, s. 51 (w.e.f. 11989). Earlier clause
was amended by Act 67 of 1984,
s. 50 (w.e.f. 11984).
795
no order reducing or waiving the penalty under sub-section
shall be made by 1[the 2[Principal
Commissioner or Commissioner] except with the previous approval of the 3[Principal Chief
Commissioner or Chief Commissioner] or 4[Principal Director General or Director General], as the case
may be].
Where an order has been made under sub-section
in favour of any person, whether such order
relates to one or more assessment years, he shall not be entitled to any relief under this section in relation
to any other assessment year at any time after the making of such order:
5[Provided that where an order has been made in favour of any person under sub-section
on or
before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to
other assessment year or years if he makes an application to the income-tax authority referred to in subsection
at any time before the 1st day of April, 1992.]
Without prejudice to the powers conferred on him by any other provision of this Act,
the 6[7*** 2[Principal Commissioner or Commissioner]] may, on an application made in this behalf by an
assessee, and after recording his reasons for so doing, reduce or waive the amount of any penalty payable
by the assessee under this Act or stay or compound any proceeding for the recovery of any such amount,
if he is satisfied that—
to do otherwise would cause genuine hardship to the assessee, having regard to the
circumstances of the case; and
the assessee has co-operated in any inquiry relating to the assessment or any proceeding for
the recovery of any amount due from him:
8[Provided that where the amount of any penalty payable under this Act or, where such
application relates to more than one penalty, the aggregate amount of such penalties exceeds one
hundred thousand rupees, no order reducing or waiving the amount or compounding any proceeding
for its recovery under this sub-section shall be made by 1[the 2[Principal Commissioner or
Commissioner] except with the previous approval of the 3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Director General or Director General], as the case may be].]
9[
The order under sub-section
Every order made under this section shall be final and shall not be called into question by any
court or any other authority.]
1. Subs. by Act 38 of 1993, s. 36, for “the Chief Commissioner or Commissioner except with the previous approval of the
Board” (w.e.f. 11993). Earlier the words “Chief Commissioner or Commissioner” were substituted by Act 4 of 1988, s.
2, for “Commissioner” (w.e.f. 11988).