Estate Duty - Interpretation of Sec.73A - Applicability of penalty. - Income Tax - 1303/CBDT

INSTRUCTION NO. 1303/CBDT Dated: January 29, 1980 Attention is invited to Board's Instruction No.172 issued from F.No.4/69/69-ED dated 15.5.70 (Copy printed below for ready reference) wherein it was stated that section 73A of the Estate Duty Act bars the commencement of Estate Duty proceedings by revenue authorities beyond the statutory period of 5 years but if the proceedings have commenced otherwise, it does not operate as a bar to their completion. In other words there is no bar to the completion of assessment on the basis of a voluntary return filed beyond the statutory period of 5 years. It was further advised that in a case where the assessment is cancelled by the Appellate Controller on the ground that the assessment completed by the ACED with reference to the return voluntarily filed is barred by limitation under section 73A of the ED Act, the matter should be contested further in appeal. 2. Recently a further question has been raised viz., whether in cases where the return is filed voluntarily by the accountable person after the expiry of five years from the date of death of the deceased, penalty proceedings for late filing can also be initiated and the penalty levied accordingly. 3. This question has been examined in consultation with Ministry of Law. The Board have been advised that in a case where a return has been filed voluntarily by the Accountable person after the period, specified in section 73A, penalty proceedings for late filing of the return can be initiated and the penalty levied in pursuance of the same. This is so because:- (i) Section 73A only bars the commencement of the proceedings by the revenue authorities. (ii) The provisions for filing a return are contained in section 53 and section 56 of the ED Act. Thus the return filed voluntarily even after the expiry of the said period of the limitation prescribed u/s 73A (a) would be a return u/s 53 56. (iii) According to Section 60(1) a person may be liable for penalty if he has without reasonable cause , failed to deliver the account of the property of the deceased u/s 53 or section 56 within the stipulated time. (iv) It can, therefore, be concluded that in a case, where a return has been filed after the expiry of the period specified in section 73A(a) and if proceedings have commenced otherwise i.e., not by the revenue authorities, penalty proceedings for late filing of the return can also be initiated and the penalty levied in pursuance of the same.