819/CBDT. - Income Tax - 819/CBDT

INSTRUCTION NO. 819/CBDT Dated : January 1, 1975 The Board have been considering introduction of check mechanism with a view to ensure that each and every concealment case gets examined from the prosecution angle- In all cases where concealment of income has been established, penalty proceedings u/s 271(1)(c) are bound to be initiated. It has, therefore, been decided that even as penalty proceedings are initiated and particulars thereof are entered in the Register of Penalties prescribed under Board's Circular No.25-D(XLV-15) of 1963 dated 1.10.1963, the result of scrutiny of cases from prosecution angle must also be recorded in the said Register in an additional column to be opened therein for the purpose. 2. The additional column being column No. 32 under the heading "Prosecution" shall be opened in Part II of the above-said Register of Penalties. It shall have two sub-columns viz (a) and (b). The existing column 32 for "Remarks" shall consequently be renumbered as 33. In petty cases involving concealment of income not exceeding Rs.10,000 where no prosecution need normally be started as per Board's instructions contained in D.O.F.No.285/141/73-IT(Inv) dated the 22nd December, 1973, the following entry shall be made under sub-column (a):- "Concealment not exceeding Rs.10,000". In other cases, where the ITO considers the case unfit for prosecution, he shall record under sub-column (a) as under:- Not fit for prosecution vide note recorded at page... (giving page number of the confidential cover in which the detailed note giving reasons to this effect is kept.)