Declaration of higher income before 31-3-86 for earlier assessment year-Liability of penalty under section 10 of Compulsory Deposit Scheme (Income-tax Payers) Act, 1974-Clarification regarding - Income Tax - 456/1986

Declaration of higher income before 31-3-86 for earlier assessment year-Liability of penalty under section 10 of Compulsory Deposit Scheme (Income-tax Payers) Act, 1974-Clarification regarding Circular No.456 Dated 22/5/1986 The reference is invited to the Board's Circular No. 450 (File No. 225/13/86-ITA. II) dated February 13, 1986,* whereby it was declared that where in response to the amnesty circular issued by the Board, higher income is declared suo motu before March 31, 1986, pertaining to the assessment year 1985-86 or earlier assessment years, the Department will be considering the applicability of the provisions of section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, in a liberal and sympathetic manner keeping in view the special circumstances obtaining in this type of cases. 2. By the Board's Circular No. 453 (File No. 225/86/85-ITA-II) dated April 4, 1986,+ the benefit of amnesty circulars was extended till September 30, 1986, in cases where the assessee wants to disclose income relating to the assessment year 1986-87 or earlier years. It is hereby clarified that now in such cases also where income is declared suo motu in response to the amnesty circulars within this extended time, a liberal and sympathetic view will be taken while considering the applicability of the provisions of section 10 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974. Instructions to this effect are being issued to all the officers of the Department. 3. Hindi version will follow shortly. (Sd.) K.K. Tripathi, Secretary, Central Board of Direct Taxes. * See [1986] 158 ITR (St.) 134. + See p. 9 supra.