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TMI Blog2002 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... y Scheme' could be judged in the assessment proceedings including the appellate proceedings but not in penalty proceedings?" - it would be appropriate to set aside the order of the Income-tax Appellate Tribunal and remand the case for passing a fresh order after addressing on the question referred to above. - - - - - Dated:- 4-10-2002 - Judge(s) : N. N. MATHUR., H. R. PANWAR. JUDGMENT The judgment of the court was delivered by N.N. MATHUR J.-The Income-tax Appellate Tribunal, Jaipur, has referred the following questions for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right to hold that 'Amnesty Scheme' did not apply to the assessment proceedings pending under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 271(1)(a) was leviable upon it as per the Central Board of Direct Taxes Circular No. 451, dated February 17, 1986. The Assessing Officer levied the penalty of Rs. 52,628 for the assessee's default under section 271(1)(a) and of Rs. 1,140 under section 273(2)(b) of the Income-tax Act. The levy of penalty was confirmed by the Commissioner of Income-tax (Appeals). The Tribunal cancelled the penalty of Rs. 1,140 for default under section 273(2)(b). As regards default under section 271(1)(a) of the Income-tax Act, the Tribunal rejected the plea of the assessee that he was immune from being penalised under section 271(1)(a) having filed the return under the Amnesty Scheme and paid tax on the ground that there was no finding of the appropr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceedings having become final cannot be the subject of consideration in penalty proceedings. We have considered the rival contentions. The Amnesty Scheme was administered by the Central Board of Direct Taxes through its various circulars with a view to induce tax evaders to make a clean breast of past evasions and square up accounts with the Revenue without apprehension of facing prosecutions and suffering penalties. The Division Bench of the Madhya Pradesh High Court in Smt. Manoramadevi Agrawal v. CWT [1997] 223 ITR 435 has pointed out the following factors as relevant in such matters: "(a) The assessee makes full and true disclosure voluntarily and in good faith, before the expiry date of the scheme, i.e., March 31, 1986; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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