Amendment of section 273A.
104. In section 273A of the Income-tax Act,-
(i) with effect from the 1st day of April, 2017,-
(a) in sub-section (1),-
(I) in clause (ii), after the words “or imposable on a person under”, the words, figures and letter “section 270A or” shall be inserted;
(II) in the Explanation, after the words “as not to attract the provisions of”, the words, figures and letter “section 270A or” shall be inserted;
(b) in sub-section (2), in clause (b), after the words “if in a case falling under”, the words, figures and letter “section 270A or” shall be inserted;
(ii) after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of June, 2016, namely:-
“(4A) The order under sub-section (4), either accepting or rejecting the application in full or in part, shall be passed within a period of twelve months from the end of the month in which the application under the said sub-section is received by the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be passed unless the assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June, 2016, the order shall be passed on or before the 31st day of May, 2017.”.
Notes on Clauses:
Clause 104 of the Bill seeks to amend section 273A of the Income-tax Act relating to power to reduce or waive penalty, etc., in certain cases.
Sub-clause (i) of the said clause seeks to amend sub-section (1) of the said section.
Clause (ii) of sub-section (1) of section 273A provides for reduction or waiver of penalty imposed or imposable under clause (iii) of sub-section (1) of section 271. Explanation to the said sub-section clarifies that if the nature of income assessed over the returned income is such that it does not attract provisions of clause (c) of sub-section (1) of section 271, then, the person shall be deemed to have made full and true disclosure for the purposes of sub-section (1) of the said section 271.
Further, clause (b) of sub-section (2) of section 273A provides for condition, wherein penalty shall not be waived and reduced under sub-section (1) of section 273A.
It is proposed to make a reference of section 270A in clause (ii) and in the Explanation to sub-section (1) and in clause (b) of subsection (2) of section 273A, owing to insertion of a new section 270A which provides for levy of penalty for under-reporting or misreporting of income and ceasing of operation of section 271, for the assessment year commencing on or after 1st April, 2017.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
Sub-clause (ii) of the said clause seeks to insert a new subsection (4A) in the said section so as to provide that an order accepting or rejecting application of an assessee shall be passed by the concerned Principal Commissioner or Commissioner within a period of twelve months from the end of the month in which such application is received. It is further proposed to provide that no order shall be passed without giving the assessee an opportunity of being heard. However, in respect of applications pending as on 1st day of June, 2016, the order shall be passed on or before 31st May, 2017.
This amendment will take effect from 1st June, 2016.
