Income less than 80% - invoking provision of penalty u/s 271 - Income Tax - 607/CBDT

INSTRUCTION NO. 607/CBDT Dated : September 1, 1973 Section(s) Referred: 271(1)(c) Statute: Income - Tax Act, 1961 Attention is invited to para 98 of Board's Circular letter F.No.1(252)64-TPL, dated 7th July, 1964 where it has been stated that ITOs should record a confidential note in the order sheet in all cases where the income returned by the assessee is less than 80% of the income assessed but where he has not invoked the provisions of the Explanation to sec.271(1), indicating the reasons for not doing so. 2. Inspite of the above instructions several cases have been pointed out by audit where the ITOs have not recorded the reasons for not initiating penalty proceedings u/s.271(1)(c). 3. The above instructions may, therefore, be brought to the notice of all the ITOs once again and they may be informed that severe action will be taken against those who disregard these instructions in future.