Regarding levy of penalty for non payment of taxes. - Income Tax - 182/CBDT

INSTRUCTION NO 182/CBDT, Dated: June 11, 1970 Section(s) Referred: 15B Statute: Income - Tax Act, 1961 Attention is invited to the provisions of Section 15-B(3) of the Wealth tax Act, 1957 regarding levy of penalty for non payment of taxes or any part thereof in accordance with the provisions of Sub-section (1) of Section 15-B. 2. The quantum of penalty leviable u/s.15-B of the Wealth Tax Act, 1957 would be the same as laid down in Board's circular in F.No.19/21/68-IT(Inv) dated the 26th February, 1969 for purposes of penalty u/s.140A(3) of the I.T.Act, 1961. Since the two provisions are similar in scope and nature, the Board have decided that the instructions laid down in the above circular may be followed in wealth tax matters as well. 3. It may be stated for your information that the Board are of the view that imposition of penalty u/s.140A(3) of the I.T.Act, 1961 and Section 15-B(3) of the Wealth Tax Act, 1957 is not mandatory in all cases of default. The respective sections of the two enactments make the assessee liable to penalty if tax on self-assessment is not paid within 30 days. Before, however, any penalty is imposed, the assessee has to be given an opportunity of being heard. The very purpose of giving an opportunity of being heard is that the assessee may be able to satisfy that sufficient cause existed for the delay. Section 140A(3) of I.T. Act, 1961 and Section 15-B(3) of the Wealth tax Act, 1957 do not provide that the assessee shall be liable to pay a penalty in all cases. In this connection the instructions contained in Board's Circular No.20(LXXVI)D of 1964 dated 7th July, 1967 may kindly be referred to. An extract of the Assurance given by the Finance Minister in the Parliament at the time of consideration of provisions of Section 140-A(3) of the Income Tax Act, 1961 introduced by Finance Bill, 1964 is enclosed for your information. These instructions may kindly be brought to the notice of all officers.