Clarifications on issues relating to effect of filing higher estimates of income for advance tax purposes on assessments for earlier years/filing of returns of income by new assessees declaring substantial income in the initial assessment year/filing of higher returns of wealth for earlier years
Circular No. 453 was issued by the Central Board of Direct Taxes on 4 April 1986. Its subject is Clarifications on issues relating to effect of filing higher estimates of income for advance tax purposes on assessments for earlier years/filing of returns of income by new assessees declaring substantial income in the initial assessment year/filing of higher returns of wealth for earlier years.
This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.
Extends the amnesty offered by Circular No. 423 dated 26-6-1985 and Circular Nos. 432, 439, 440 and 444 dated 15-11-1985 and Circular No. 451 dated 17-2-1986, which had expired on 31 March 1986, until 30 September 1986, where the assessee wants to disclose income or wealth relating to assessment year 1986-87 or earlier. For assessment year 1986-87 itself it states the terms: disclosure of the true income and wealth in the returns and prompt payment of the tax due under section 140A of the Income-tax Act or section 15B of the Wealth-tax Act entitles the taxpayer to immunity from penalty and prosecution. But if the return for 1986-87 is not filed by the due date under section 139(1) or section 14(1) of the Wealth-tax Act, the immunity does not extend to the penal consequences of the late filing.
Numerous requests came from various parts of the country to extend the time a little longer; it was pointed out that the last week of March had several closed holidays and that in States like Punjab most towns were under curfew, disrupting normal civic life; and the response to the offer had been very good.
Clarifications on issues relating to effect of filing higher estimates of income for advance tax purposes on assessments for earlier years/filing of returns of income by new assessees declaring substantial income in the initial assessment year/filing of higher returns of wealth for earlier years
Extension of benefit of amnesty scheme till 30-9-1986 - 1. Taxpayers are aware that the "amnesty" offered by the Government in terms of the following circulars expired on 31-3-1986:
- Circular No. 423, dated 26-6-1985 [Clarification 1]
- Circular No. 432, dated 15-11-1985 [Clarification 2]
- Circular No. 439, dated 15-11-1985 [Clarification 3]
- Circular No. 440, dated 15-11-1985 [Clarification 4]
- Circular No. 444, dated 15-11-1985 [Clarification 5]
- Circular No. 451, dated 17-2-1986 [Clarification 6]There have been numerous requests from various parts of the country for extending the time limit a little longer. It has also been pointed out that there were several closed holidays in the last week of March. Further, in States like Punjab, most of the towns were under curfew; thereby disrupting normal civic life. The response to the "amnesty" offer has been very good indicating a desire on the part of many people who have hitherto concealed their income to turn over a new leaf. In view of all this, it has been decided to extend the benefit of the "amnesty" circulars, referred to above, till 30-9-1986 in cases where the assessee wants to disclose income or wealth relating to the assessment year 1986-87 or earlier.
2. So far as the assessment year 1986-87 is concerned, the disclosure of the true income and wealth in the income-tax and wealth-tax returns and the prompt payment of taxes due on the same under section 140A of the Income-tax Act, and/or section 15B of the Wealth-tax Act, will entitle the taxpayer to immunity from penalty and prosecution. It may be noted that where the return for 1986-87 is not filed on the date on which it is due under section 139(1) of the Income-tax Act/or section 14(1) of the Wealth-tax Act, the immunity will not extend to the penal consequences of the late filing of such return.
Circular: No. 453 [F.No. 225/86/85-IT(A-II)], dated 4-4-1986.
Only in old penalty or prosecution records where immunity was claimed on an amnesty disclosure.
Source: the Income Tax Department’s own published text — its page for this instrument.
