TMI Blog1999 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... fact in cancelling the penalty levied under section 271B of the Income-tax Act ? 2. Whether, interpretation of the amnesty scheme/circulars by the Tribunal is correct ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that even on merit the penalty is not leviable ?" The factual background, as set out in the statement of case, is almost undisputed and is as follows : For the assessment year 1985-86, the assessee filed a return of income on March 31, 1987, declaring total income of Rs. 2,25,000. The return was filed under the "amnesty scheme". The income declared was on an estimated basis on a turnover of Rs. 2,69,32,671. The assessment was completed on a total income of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty could have been levied in case of noncompliance with the provisions of section 44AB. But the situation is somewhat different under the amnesty scheme. It would be necessary to make reference to some of the circulars issued on the point. The relevant portions of the circulars, which have bearing on the point, read as follows : Circular No. 423 (F. No. 225/86/85-ITA.II), dated 26th June, 1985. "3. In such cases, the advisable course for the taxpayer will be to, voluntarily and in good faith, make a full and true disclosure of his concealed income, prior to its detection by the Income-tax Officer, and then make an application to the Commissioner of Income-tax for the reduction or waiver of penalty and interest under section 273A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly, where for earlier years there has been any suppression of assets or undervaluation of assets for the purposes of wealth-tax, the taxpayers would be well advised to come forward and disclose such undervaluation or suppression now to the Commissioner of Wealth-tax, whether the wealth-tax assessments for those years are pending or completed. They will, of course, have to pay wealth-tax on those assets at the rates applicable to those years, but will not be subject to any penalty or prosecution." Circular No. 441 (F. No. 225/86/85-ITA-II), dated November 15, 1985 (see [1985] 156 ITR (St,) 165) : "3. While it is true that the penal provisions of law will hereafter be applied strictly in cases where a person having taxable income or wea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Instructions are issued to the Income-tax Officer not to levy penalty under the Compulsory Deposit Scheme (Income-tax Payers) Act." On a bare reading of the relevant portions of the circulars referred to above, it is clear that there was total immunity from penal proceedings. Learned counsel for the Revenue, with reference to Circular No. 432, dated September 20, 1985, submitted that restriction on levy of penalty was relatable to filing of estimates, payment of advance tax, filing of returns in time and not to a case covered under section 271B of the Act. This submission overlooks the use of expression "etc." after mentioning some of the specified categories of default. "Etc." is an abbreviation of "etcetera", and may mean and others ; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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