Scope and applicability of Sec.273A(2). - Income Tax - 1834/1990

INSTRUCTION NO. 1834/1990 Dated: January 16, 1990 The Board have examined the scope and applicability of sub-section (2) of section 273A of the Income-tax Act, which enumerates the circumstances in which Board's prior approval is required for waiver or reduction of penalty under sub-section (1) of section 273A. 2. The Board desire that if in a case, (i) the amount (or where the disclosure relates to more than one assessment year, the aggregate amount for the relevant assessment years) of any one or more of the penalties imposed or imposable under clause (i) of sub-section (1) of section 271 or under section 273 (minimum amount of penalty u/s 273) exceeds a sum of one hundred thousand rupees, or (ii) the amount of income (or where the disclosure relates to more than one assessment year the aggregate amount of income for the relevant assessment years) referred to in clause (b) of sub-section (2) of section 273A, in respect of which penalty under section 271(1)(c) is imposed or imposable, exceeds a sum of five hundred thousand rupees, no order under sub-section (1) of section 273A, reducing or waiving the amount of any of the penalties imposed or imposable under clause (i) of sub-section (1) of section 271 or imposable under clause (iii) of sub-section (1) of section 271 or section 273 should be made by the Chief Commissioner or Commissioner, except with the previous approval of the Board. In other words, satisfaction of any one of the conditions mentioned in clauses (a) and (b) of sub-section (2) of section 273A is sufficient to bring within the ambit of sub-section (2) of section 273A, each of the penalties imposed or imposable under clause (i) of sub-section (1) of section 271, clause (iii) of sub-section (1) of section 271 and section 273 of the Income-tax Act in a case. 2. These instructions may please be brought to the notice of the concerned Commissioner of Income-tax in your region.