Supersession of Circular No. 18D dated 15-7-63 regarding penalty under sec. 221 of the Income-tax Act - Income Tax - 262/1979

Supersession of Circular No. 18D dated 15-7-63 regarding penalty under sec. 221 of the Income-tax Act Circular 262 Dated 14/9/1979 To All Commissioners of Income-tax. Sir, Subject : Supersession of Circular No. 18D dated 15-7-63 regarding penalty under sec. 221 of the Income-tax Act. It has been brought to the notice of the Central Board of Direct Taxes that notwithstanding the amendment of section 221 of the Income-tax Act, 1961, through section 53 of the Taxation Laws (Amendment) Act, 1975, adding a specific Explanation to the effect that penalty under section 221 will be exigible even in a case where the tax is paid after the due date but before the levy of penalty, some appellate authorities are cancelling the penalties on the ground that a departmental instruction issued on 15th July, 1963, in F.N. 58/13/63-IT (Circular No. 18-D (XLV-14)) of 1963 has not been withdrawn. 2. To remove any ambiguity in this regard, it is hereby clarified that the instructions contained in F.No. 58/13/63-IT dated July 15, 1963, stand superseded by the said amendment effective from October 1, 1975. 3. This may be brought to the notice of all officers working under your charge. Yours faithfully, (Sd.) H. Venkataraman, Secretary, CBDT