Sec.285A(2)-Discretion of Commissioners. - Income Tax - 1315/CBDT

INSTRUCTION NO. 1315/CBDT Dated: March 1, 1980 Attention is invited to Section 285A(2) of the Income-tax Act which gives a discretion to the Commissioner to impose upon any contractor contravening the provisions of sub-section (1) such fine not exceeding Rs.50 as he thinks fit for everyday during which the contravention continues. ,It is noticed that sometimes the Commissioners do not take cognizance of such default probably because they are not aware of it. It has also come to the notice of the Board that the Commissioners, in exercise of such discretion in suitable cases, decide not to impose any fine, but no indication of such conscious decision having been taken is left on the record. This gives an occasion to Audit to raise objections in cases where there is lack of evidence of exercise of discretion or of conscious decision by the Commissioner. 2. The Commissioners are advised to ensure that all cases of default under section 285A(1) are brought to their notice for necessary action. 3. Further, in a case where there is a breach of the legal provisions contained in Section 285A(1) and the Commissioner decides not to impose any fine, an indication of such conscious decision having been taken should be on the record. When a discretion has been vested with the Commissioner to be exercised reasonably and judiciously, so long as such discretion has been exercised properly, Audit will not question the judicial exercise of discretion by the Commissioner.