Circular No. 472

What this is

Circular No. 472 was issued by the Central Board of Direct Taxes on 15 October 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.

What it does

Extends the amnesty scheme under the Income-tax and Wealth-tax Acts until 31 March 1987. The scheme had been offered through Circular Nos. 432, 439, 440 and 441, all dated 15-11-1985, Circular No. 451 dated 17-2-1986 and Circular No. 453 dated 4-4-1986, and the conditions in those circulars continue to apply. The extension covers returns of income and wealth for assessment year 1986-87 and earlier assessment years. The text records that it was corrected by Circular No. 474 dated 11-11-1986.

Why it was issued

The response of taxpayers during the operation of the scheme had been good, and the Board decided to extend its benefits further.

Who it reaches

• Taxpayers disclosing concealed income for assessment year 1986-87 or earlier
• Assessees filing higher wealth-tax returns for earlier years
• New assessees coming forward under the amnesty circulars

The instrument, as the Board published it

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 period of amnesty scheme under the Income-tax and Wealth-tax Act—1. Taxpayers are aware that the Government has through the following circulars, issued from time to time, of­fered a scheme of amnesty under the Income-tax and Wealth-tax Acts :
- 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. 441, dated 15-11-1985 [Clarification 5]
- Circular No. 451, dated 17-2-1986 [Clarification 6]
- Circular No. 453, dated 4-4-1986 [Clarification 7]
2. In view of the good response of the taxpayers during the operation of this scheme, it has now been decided to further extend the benefits of the amnesty scheme till 31-3-1987. The conditions laid down in the above circulars will apply in the case of returns of income and wealth for the assessment year 1986-87 and earlier assessment years.
Circular : No. 472 [F. No. 225/86/84-IT (A-II)], dated 15-10-1986 as corrected by Circular No. 474 [F.No. 225/86/85/IT(A-II)], dated 11-11-1986.

What to watch

• The date it fixed, 31 March 1987, has long passed; this is a time-limited extension and is spent.
• It grants nothing new - the conditions of the six earlier circulars listed continue to govern, so the immunity depends on complying with them.
• It reaches only assessment year 1986-87 and earlier years.
• The text itself records a correction by Circular No. 474 dated 11-11-1986.

Where you meet it

Only in old records where immunity from penalty or prosecution was claimed on a disclosure made under the amnesty circulars.

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