Review of Instructions 822 in view of judicial orders. - Income Tax - 1450/CBDT

INSTRUCTION NO. 1450/CBDT Dated: February 3, 1982 Reference is invited to boards Instructions No.822 dated 13th January 1975 (F.No.281/356/74-IT(INV) PARA 4 of the said instruction added a sub-para reproduced below, to para 4 of boards confidential letter No.I/33/68-IT(Inv) dated 29th September 1969:- While deciding whether return for a particular assessment year is filed voluntarily and in good faith the commissioner should take into consideration all the facts and circumstances of the case including the fact if any that the said return is filed by the assessee after getting a notice u/s.139(2) in respect of another assessment year. 2. Instruction No.822 has been re-examined by the board in consultation with the Ministry of law in the light of several High court judgments particularly the followed:- i) Ghulam Sheikh V.C.W.T.1977 109 ITR 395 J K; ii)Madhukar Manilal Modi V.C.W.T.1978 113 ITR 310 Gujarat iii) Mahavir Transport Co. Ltd. V.C.T.T. 1978 113 ITR 360 Gujarat; iv)Dr.Paramjit Singh Grewal C.V.I.T. 1980 125 ITR 549 (Punjab Harayana) In view of the Law Ministry's advice now obtained Instruction No.822 is withdrawn. Consequently the clarification given in para 4 of boards letter F.No.1/33/68-IT(INV) dated 29th September 1969 reproduced as under will remain. 4. The section deals with the penalties u/s.271(1)(a) (b). Penalties under these sub-sections are levied separately in respect of each year. In the circumstances the applicability of sec.271(4A) should be considered separately with reference to the facts in respect of each assessment year. It would not be proper to reject the request for reduction or waiver of penalty in respect of all the assessment years if the section is not applicable in respect of a particular assessment year. Only for the limited purpose of obtaining the boards approval it is necessary to consider whether the penalties imposable for all the years exceed Rs.50,000.