TMI BlogProcedure of penalty proceedings.X X X X Extracts X X X X X X X X Extracts X X X X ..... orders in which even the particular facts of the case leading to the levy of penalty have not been stated, much less any attempt being made to bring home the charge or establish the default justifying the levy of penalty. This is a very unsatisfactory state of affairs. 2. Board's Instructions No.1160 dated 31st March 1978 contains comprehensive instructions with regard to penalty work. It was advised therein inter alia: a) Before starting a penalty proceedings the ITO should make am enquiry from the assessee with a view to finding out whether he was prevented by any reasonable cause from complying with his statutory obligations. If the assessee has a genuine explanation which deserves acceptance without further detailed enquiry, the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the relevant assessments and d) An order in a routine manner using a set form should be avoided. An order levying a penalty should be a speaking order showing that the discretion vested in the authority imposing the penalty has been judiciously exercised. 3. The Board view with concern that the above instructions are not being followed. The Board wish to emphasise that for the sake of revenue avoidance of infructous work and good public relations it is imperative that the penalty proceedings are initiated only in liable cases and penalties are imposed after due enquiry and giving the assessee's requisite opportunity of being heard. There must be no initiation of penalty proceedings in a mechanical manner. If an assessees explanation d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction No.819 (F.NO.285/49574-IT(INV)] dated 1-1-75 to show the result of scrutiny of the case from the prosecution view point, the MPR and the six monthly control statement dated 13th August 1973 are the aids for keeping a constant watch over the progress and disposal of penalty work and the Board suggest to the assessing and supervisory officers to make full use thereof. 6. These instructions apply mutatis mutandis to penalty proceedings under the Wealth tax, Gift tax and Estate duty Acts and may be brought to the notice of all the officers in your charge. - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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