Scope of Sec. 273A. - Income Tax - 1841/1990

INSTRUCTION NO. 1841/1990 Dated: March 26, 1990 The question whether the benefit of sub-section (1) of sec. 273A of the I.T.Act is available in a case for more than one assessment year, only when the disclosure for all the assessment years is made simultaneously on the same date and not when the disclosure for different years is made on different dates, was considered by the board in consultation with the Ministry of Law. The advice of the Ministry of Law had been reproduced in Instruction No. 1823 dated 1-8-89. 2. The law ministry had stated inter alia, that u/s.273 A, the cases relating to more than one assessment year can be considered and disposed of by a single order but disclosures made for different assessment years at different time-cannot be clubbed together and disposed of by a single order. They further observed as under:- "If an application is made by the assessee for different assessment years at one stretch of time, of course, the commissioner may waive the penalty for one assessment year and may not say anything about other assessment year. The orders so passed shall be binding and shall be considered as has covered all the assessment years. 3. A doubt has arisen on the interpretation of this portion of the advice of the Ministry of Law. It is clarified that this covers a case where more than one disclosure is made for different assessment years at different times, and these disclosures are pending before the CIT/CCIT for orders u/s. 273A of the I.T.Act. In such a situation only the first of these disclosure should be considered by the CIT/CCIT u/s.273 A of the I.T.Act. If an order u/s. 273A(1) is passed in favour of the assessee, the other disclosures made subsequently for other years should be rejected u/s. 273A(3) of the I.T.Act. If however the first disclosure is rejected the CCIT/CIT should consider the next disclosure and if an order in favour of the assessee is made u/s. 273A(1) the subsequent disclosures should be rejected u/s.273 A. This procedure has to be followed in respect of disclosure made at different points of time for different assessment years so long as no order is made in favour of the assessee u/s. 273A(1). 4. As clarified earlier, disclosures made for different assessment years at different points of time cannot be disposed of by a single order. 5. The above instruction may be brought to the notice of all the officers working in your region.