K.C. Agrawal, J.

1. THIS petition under Article 226 of the Constitution has prayed for a number of reliefs. One of them is for setting aside the order of the Commissioner of Income-tax dated September 19, 1985, by which penalty was reduced or waived by 50% under Section 273A(4) of the Income-tax Act, 1961.

2. SECTION 273A(4) of the Income-tax Act confers discretion on the Commissioner to reduce or waive the amount of any penalty payable by the assessee under this Act, 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 enquiry relating to the assessment or any proceeding for the recovery of any amount due from him."

The Commissioner of Income-tax considered the relevant facts while dealing with the application under SECTION 273A(4) and on the satisfaction that the petitioner co-operated with the income-tax authorities in the course of assessment and payment of tax, reduced the penalty by 50 per cent. It could not be and was not disputed before us that SECTION 273A(4) is discretionary in nature. We could have interfered if the discretion had not