( 1 ) THIS matter arises under the Income-Tax Act, 1961, hereinafter referred to as the Act, The petitioner owned one lorry since the year 1964. Prior to the assessment year 1965-66, he was not an assessed under the act. He did not file his return of income for the assessment years 1965-66 to 1969-70 as required under the Act. On 4-11-1969 he voluntarily submitted his returns for the assessment years 1965-66 to 1969-70. On the said returns, the assessing authority (respondent 2) completed the assessment and passed assessment order on20-ll-1969. On the same day, the 2nd respondent issued notices to the petitioner under sub-sec. (1) of S. 27i of the act to shdw cause why penalty should not be imposed on him On receipt of the sai'd notices, the petitioner made an application dt. 2-3-1970 before the Commissioner of Income-Tax in Mysore (respondent 1) for waiving the penalty under S. 271 (4a) of the Act. In the said application the petitioner stated that he has fully satisfied the requisite conditions for exercise of the discretion of the Commissioner for reduction or waiver of the aomunt of minimum penalty imposable on the petitioner. It was expressly slated that he had filed his returns of income for the assessment years 1sg5-66 to 1969-70 voluntarily before notices under S. 139 (2) were issued, that he had co-operated fully in the enquiry relating to the assessment and that he has already paid the tax assessed. The Commissioner of Income-tax by his order dt. 27-4-1970 rejected the said applicaiton on the ground that the conditions for invoking his discretion-under S. 271 (4a) have not been satisfied. The said order reads thus : " The petition dt. 2-3-1970 for waiver of penalty imposable under 3. 271 (1) (a) for the assessment years 1965-66 to 1968-69 is rejected, as the conditions for invoking S. 271 (1a) are not satisfied in this case. " ( 2 ) THE petitioner has challenged the said order under Art. 226 of the constitution. The ground urged by Sri S. P. Bhat for the petitioner was that the order of the Commissioner is not a speaking order. The 1st respondent has not filed any counter-affidavit, but a counter-affidavit has been filed by Sri A. R. Balakrishna Tilakan, Income-Tax Officer (OSD), bangalore, in which the reasons for rejection of the petitioner's application have been set out. The 1st respondent has not filed any counter-affidavit, but a counter-affidavit has been filed by Sri A. R. Balakrishna Tilakan, Income-Tax Officer (OSD), bangalore, in which the reasons for rejection of the petitioner's application have been set out. ( 3 ) THAT the order of the 1st respondent impugned is not a speaking order has not been disputed and cannot be disputed. . But it was urged by Sri s. R. Rajashekara Murthy fcr the Department that if we peruse the counter-affidavit filed by the Income-Tax Officer, the order impugned can be supported and therefore we should not interfere in the instant case. Sub-sec. (4a) of S. 271 so far as it is relevant reads thus :"notwithstanding anything contained in clause (i ). . . . . . of sub- sec. (1) the Commissioner may, in his discretion- (i) reduce or waive the amount of minimum penalty imposable on a person under clause (i) of sub-sec. (1) for failure, without reasonable cause, to furnish the return of total income which such person was required to furnish under sub-sec, (1) of S. 139, if he is satisfied that such person, (a) in the case referred to in clause (i) of this sub-section has prior to the issue of notice to him under sub-sec. (2) of S. 139, voluntarily and in good faith made full disclosure of his income. . . . . . (b) has co-operated in any enquiry relating to the assessment of such income; and (c) has either paid or made satisfactory arrangements for payment of any tax or interest payable in consequence of an order passed under this Act in respect of the relevant assessment year. " ( 4 ) THE discretion that is vested in the Commissioner under sub-sec, (1) is either to reduce or waive the amount of minimum penalty imposable on a person under sub-sec. (1) of S. 271, if the conditions laid down in clauses (a), (b) and (c) are satisfied. If the said conditions are satisfied, the Commissioner has no discretion to refuse to reduce er waive the amount of minimum penalty imposable, but he is under a statutory duty to exercise his discretion of either reducing or waiving the penalty. In the instant case it was not contended by the learned Counsel for the Department that conditions laid down by clauses (b) and (c) have not been satisfied. In the instant case it was not contended by the learned Counsel for the Department that conditions laid down by clauses (b) and (c) have not been satisfied. All that was stated in the counter-affidavit was that the returns by the petitioner were not filed in good faith and that he has not made full disclosure of his income. That the petitioner had submitted his returns voluntarily before the issue of notice to him under sub-sec. (2) of S. 139 is undisputed. The expression 'voluntarily and in good faith' occurring in clause (a) of sub-sec. (4a) refers to the 'full disclosure of income'of the assessee. Under clause (a) of sub-sec. (4a), the Commissioner has to be satisfied that the assesee has made full disclosure of his income voluntarily and in good faith. There is an obligation cast under S. 271 (4a) on the commissioner to examine the case of the petitioner and satisfy himself as to whether he fully satiefies all the conditions laid down in clauses (a), (b) and (c) and if any bf the conditions have not been satisfied, then the commissioner ought to state as to which condition has not been satisfied. In ofther words, the order of refusal to exercise the discretion should be a speaking order as the same is open to scrutiny by this Court. Since the impugned osder is not a speaking order, the same cannot be allowed to stand undisturbed. Accordingly, we allow this writ petition, quash the impugned order dt. 27-4-1970 (Ext. 'c') and direct the 1st respondent to make a fresh order in accordance with law in the light of thrs order. It is ordered accordingly. No costs. --- *** --- .