Guidelines in the matter of levying fines. - Income Tax - 410/CBDT

INSTRUCTION NO. 410/CBDT Dated: May 4, 1972 Section(s) Referred: 285A(1) ,285A(2) Statute: Income - Tax Act, 1961 Attention is invited to Board's instructions No. 300 dated 30-5-1971 [F. No. 284/46/70-IT(Inv.)]. Certain guidelines were outlined in that circular to be kept in view by the Commissioners while passing orders u/s 285A(2) of the I.T. Act. 2. Since the issue of the above instructions, a number of representations have been received both from individuals and Chambers of Commerce and Industry, complaining that harsh fines are being imposed by some Commissioners. Some Commissioners have also requested that the Board may prescribe certain guidelines in the matter of levying fines. 3. It is not possible to contemplate the various circumstances under which the default u/s 285A comes to be committed by a Contractor and to prescribe the minimum and maximum fines that should be imposed in a given set of circumstances; it is also not desirable nor proper to issue any instructions which may infringe the judicious discretions of the Commissioners. All the same, the Board would like to impress on the Commissioners the need to levy lenient fines in respect of such technical defaults. Commissioners may levy reasonable amounts of fines in the first instance and it is only in the case of repeated failure or other circumstances leading to or contributing to loss to the Government that the fines could be higher. The above guidelines may be kept in mind while deciding cases of the type.