Amnesty circulars-Scope of Sec.10 of CDS (ITP) Act 1974. - Income Tax - 1712/CBDT

INSTRUCTION NO. 1712/CBDT Dated: May 22, 1986 Reference is invited to the Board's Instruction No. 1694 (file No. 225/13/86-ITA.II) dated 13.2.1986 whereby it was clarified that where in response to the amnesty circulars of the Board higher income was declared suo moto before 31.3.1986 pertaining to the Assessment year 1985-86 or earlier Assessment years, it could be held that the default under the CDS (ITP) Act 1974 was due to a reasonable cause and, therefore, the penalty u/s 10 of CDS (ITP) Act 1974 need not be initiated in such cases. 2. In view of the fact that by the Board's circular No. 453 (file No. 225/86/85-ITA. II) dated 4.4.1986, the benefit of the amnesty circulars has been extended till 30.9.1986 in cases where the assessee wants to disclose income relating to assessment year 1986-87 or earlier years, it is hereby clarified that keeping in view the special circumstances obtaining in such cases, the penalty proceedings u/s 10 of CDS (ITP) Act 1974 need not be initiated in respect of income declared till 30.9.1986 pertaining to assessment year 1985-86 or earlier assessment years. 3. The above instructions may please be brought to the notice of all the officers working in your charge. 4. Hindi version will follow shortly.