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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 ..... t 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 recommendation has been accepted by Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to be recorded by the Income-tax Officer have been suitably modified. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icate 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 individual) in which the applicant is assessed or assessable to income-tax and address for the purpose of assessment. 2. Name and address of al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : Date of previous year ending Assessment year Total contract amount received The name of the authority or persons from whom amounts are received 1 2 3 4 6. In case there has been no income-tax assessment for any year, whether returns have been submitted under sections 139(1), 139(2) and 133 of the Income-tax Act, 1961 or tax has been paid in advance under section 210(3) of the Income-tax Act, 1961 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 18(1)(c) of the Wealth-tax Act 1957. or In cases where no appeal has been filed by the assessee against the penalty imposed on or after 1-4-1975 under section 271(1)(c) of the Income-tax Act, 1961 the period of three years has expired from the date of the imposition of the penalty. (b) The period of three years has expired from the date of the order of conviction on or after 1-4-1975 under section 277 of the Income-tax Act or under section 36(1) of the Wealth-tax Act, 1957 or under section 199/200 of the Indian Penal Code. Note : Delete whichever is inapplicable in the above certificate. Date .................. .................................................... Signature of the ITO .................................... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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