Judgment

Rajendra Babu, J.-The appellants before us preferred a writ petition under Article 226 of the Constitution of India before the High Court of Delhi seeking for a direction to extend the benefit of waiver of penalty arising under Section 271 (4A) of the Income Tax Act, 1960 (hereinafter referred to as “the Act”). Pursuant to a scheme, the second appellant. Firm, made an application on February 12, 1965 stating that they would place before the Income Tax Officer a true statement of their financial assets, transactions and they were pre­pared to file a statement of the affairs as on March 31, 1965. The statement of affairs filed on 20th May, 1965 disclosed an income of about Rs. 28,00,000/- as the total accretion to its wealth over the eight years upto March 31, 1965. Ultimately after some negotiations between the Department officials and the appellants, the appellants agreed to be assessed at Rs. 66,56,000/- subject to the usual allow­ance for depreciation etc. spread over eight assessment years 1958-59 to 1965-66. Assessments for the year 1958-59 to 1959-60 were to be reopened inasmuch as they were complete by that time. The Inspecting Assistant Commissioner issued notices t