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TMI BlogDenial of income-tax clearance certificate to contractors on levy of penalty for concealment and/or conviction - Guidelines thereforX X X X Extracts X X X X X X X X Extracts X X X X ..... elsewhere recommended that Government patronage should be denied to tax evaders. In conformity with that recommendation, we consider it would be necessary to ensure that contractors who are found to have evaded taxes are denied the opportunity to earn profit from Government contracts. We, therefore, recommend that contractors who have been penalised or convicted for concealment of income/wealth should not be awarded Government contracts for a period of three years. For this purpose, the form of tax clearance certificate applicable to contractors may be suitably amended to include information whether the contractor was penalised or convicted for concealment of income/wealth during the immediately preceding three years." 2. The recommenda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of conviction by the original court irrespective of the fact whether any appeal has been filed or not. 4. In cases where penal action is taken against the contractor under section 271(1)( c ) of the Income-tax Act, 1961, or section 18(1)( c ) of the Wealth-tax Act, 1957, and proceedings for conviction are also initiated for the offences referred to above, the prohibition will operate only for a period of three years reckoned from the date of the conviction order or the confirmation of the penalty order by the Tribunal referred to above, whichever is earlier. 3. With a view to ensuring the implementation of the above decision of the Government, the application form for Income-tax Clearance Certificate and the form of certificate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the amended form. 4. All the Ministries are requested to bring this revised form of Income-tax Clearance Certificate for strict compliance to the notice of all attached and subordinate offices and Public Sector Undertakings associated with them. This form equally applies to Directorate General of Supplies Disposal and Central Public Works Department and the concerned Departments are requested to see that these agencies do insist on the production of Income-tax Clearance Certificate in the amended form before grant of any contract, order, etc. Letter : F. No. 221/34/76-IT(A-II), dated 7-4-1981 . ANNEX - REVISED PROFORMA OF INCOME-TAX CLEARANCE CERTIFICATE 1. Name and style (of the company, firm, HUF or individu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmative, give the date, amount of penalty imposed and section under which imposed. ( ii ) Whether any appeal has been filed against the penalty order before the Appellate Assistant Commissioner of Income-tax or before the Income-tax Appellate Tribunal. If so, the result thereof along with the date of the appellate order. ( b ) Whether convicted for an offence within the meaning of section 277 of the Income-tax Act, 1961 or under section 36(2) of the Wealth-tax Act, 1957 or under section 199/200 of the Indian Penal Code. If so, the date of the conviction order. ( c ) Details of total contract amount received by the applicant, whose name is mentioned against (1), above, during the preceding five accounting years : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date ............................................................... I hereby certify that— 1. The information contained in this application has been verified from the assessment records and found correct. 2. The assessee has paid all tax demands due other than those which have been stayed by competent authority. 3. The assessee has been co-operating with the department in facilitating the completion of the pending assessments. 4. ( a ) The period of three years has expired from the date of the appellate order of the Income-tax Appellate Tribunal confirming or partially confirming the penalty levied on or after 1-4-1975 under section 271(1)( c ) of the Income-tax Act, 1961 or under section 18(1)( c ) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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