Guidelines for withdrawal of prosecution under the Direct Tax Laws - Income Tax - F.No. 285/16/90-lT(Inv.)/43

F.No. 285/16/90-lT(Inv.)/43 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi Dated : 14th May, 1996 To The Chief Commissioners of Income Tax/ Director Generals of lncome Tax (Inv.). Sir, Sub: Guidelines for withdrawal of prosecution under the Direct Tax Laws -clarification A reference is invited to Board s circular letter of even number dated 20/10/1995 on the above subject wherein the Chief Commissioners were directed to send proposals/requests for withdrawal of prosecution to the Board due the fact that addition and penalties have been deleted.. 2. The matter has been reconsidered in the Board s meeting held recently and it has been decided to modify the earlier decisions/instructions on 20/10/95. Henceforth it has been decided that all cases where the prosecutions were launched on the basis of additions made in assessments on account of undisclosed income and levy of penalty u/s 271 (1 )(c) but these additions made were subsequently deleted, the department should take steps to withdraw the prosecutions after taking the opinion of the Ministry of Law and approval of the Finance Minister. In order to adopt this procedure, the earlier circular letter F. No. 285/160/90-FF (Inv.) dated 20/10/1995 stands modified/amended. Therefore, in the light of these instructions the Chief Commissioners may send proposals in suitable cases on the changed circumstances where additions and penalties are deleted by the Appellate Authorities and these decisions have been accepted by the Department. 3. These instructions may be brought to the notice of all the officers working under your charge. Yours faithfully, (Deepa Krishan) Officer on Special Duty (L)