Circular No. 474 — 474 dated 11 11 1986 modifying circular no. 472 dated 15 10 1986

What this is

Circular No. 474 was issued by the Central Board of Direct Taxes on 11 November 1986. Its subject is 474 dated 11 11 1986 modifying circular no. 472 dated 15 10 1986.

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 to 31 March 1987. The scheme had been offered by circulars No. 432, No. 439, No. 440 and No. 441, all dated 15 November 1985, No. 451 dated 17 February 1986 and No. 453 dated 4 April 1986. The conditions in those circulars continue to apply, and the extension covers returns of income and wealth for assessment year 1986-87 and earlier assessment years.

Why it was issued

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

Who it reaches

Taxpayers filing returns of income for assessment year 1986-87 and earlier years under the amnesty
Wealth-tax assessees filing under the same scheme
Assessing Officers dealing with amnesty returns

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

Amnesty Scheme
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 record is headed as circular No. 474 dated 11 November 1986, but the text signs off as circular No. 472 dated 15 October 1986 as corrected by circular No. 474; write from the text.
This is a one-time extension whose outer date, 31 March 1987, has long passed.
It carries no new conditions of its own; the conditions are those in the six earlier circulars it lists.
It does not reach assessment years after 1986-87.

Where you meet it

Only in an old matter about whether a return filed by 31 March 1987 attracted the amnesty and its protection from penalty.

← Circular No. 475 · Circular No. 473 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.