Penalty u/s 18(1)(a). - Income Tax - 394/CBDT

INSTRUCTION NO. 394/CBDT Dated: March 17, 1972 Section(s) Referred: 18(1)(a) Statute: Wealth Tax Act, 1957 Attention is invited to Instruction No. 68 dated the 4th July, 1969 and Instruction No. 354 dated the 11th December, 1971 wherein the Board desired that in all cases where the provisions of Section 18(1)(a) are attracted, the W.T. Officer should promptly levy the penalty. 2. In para 2 of instruction No. 354 dated the 11th December, 1971 it was desired that it should be impressed upon all the W.T. Officers working in your charge that they should ensure that penalty u/s.18(1)(a) is levied in all the appropriate cases. It is hereby clarified that where, however the circumstances are such that no penalty need be levied u/s. 18(1)(a) and the W.T. Officer decides not to levy the penalty a note should be recorded by the W.T. Officer in the order sheet giving detailed reasons for not invoking the provisions of Section 18(1)(a). 3. The above procedure should be followed for penalties leviable under the G.T. Act also. Stringent action should be taken against the W.T. Officers concerned in cases any such lapses in future.