1898/1992. - Income Tax - 1898/1992

INSTRUCTION NO. 1898/1992 Dated: September 1, 1992 Section(s) Referred: 40A(3) ,184(4) ,234A ,271E , 271D, 271E, Statute: Income - Tax Act, 1961 Representations have been received from Income-tax payers of Kashmir drawing the attention of the Board to the prevailing disturbed conditions in Kashmir valley, due to which they could not comply with the various statutory provisions under the I.T.Act. 2. It has accordingly been decided by the Board that the AOs while completing assessments of Kashmir migrants for A.Y's 1990-91 and 1991-92 shall take note of the disturbed conditions prevailing in Kashmir valley and extend the benefit of clause (j) of Rule 6-DD while examining the cases for application of the provisions of section 40A(3). Similarly, the AO's will extend the benefit of the proviso to section 184(4) of the I.T. Act, 1961 with regard to the belated applications filed for registration of firms for assessment years 1990-91 and 1991-92. For these years the AOs will also not initiate the penalty proceedings u/s.271 D, 271 E and 272A(2) of the I.T. Act, 1961 having regard to the fact that they were prevented by a reasonable cause i.e., prevailing disturbed conditions. 3. It has also been decided that interest chargeable u/s. 234A and 234B for delayed filing of returns and non-payment of advance tax by the Kashmiri migrants should be waived for Assessment years 1990-91 and 1991-92 for a period upto the date of filing of return or one year from the end of the Assessment year whichever is earlier. Accordingly, the Board directs the Assessing Officers in exercise of powers u/s.119(2)(a) not to charge interest u/s.'s 234A and 234B for Assessment years 1990-91 and 1991-92 for the periods mentioned above, and wherever such interest has been charged it may be waived. 4. The aforesaid concessions will be available to only migrant assessees of Kashmir Valley i.e., those who were assessed or who were assessable in Kashmir valley but who have filed their returns for Assessment years 1990-91 and 1991-92 outside the valley, because of their migration. This instruction may be brought to the notice of all officers working in your region/charge urgently.