Amendment of section 119.
62. In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the figures and letter “234E”, the figures and letter “270A,” shall be inserted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 62 of the Bill seeks to amend section 119 of the Income tax Act relating to instructions to subordinate authorities.
Clause (a) of sub-section (2) of the aforesaid section empowers the Board to issue directions or instructions for the purpose of proper and efficient management of the work of assessment and collection of revenue provided such directions are not prejudicial to the assessee.
It is proposed to make a reference to section 270A in the said clause (a) of sub-section (2) of section 119, so as to enable the Board to issue directions and instructions in respect of section 270A of the Income-tax Act, as well.
The proposed amendment is consequential to the insertion of a new section 270A in the Income-tax Act which provides for levy of penalty for under-reporting and misreporting of income.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
