Penalty initiation guidelines require individual enquiry, hearing, and reasoned orders to curb routine penalty proceedings. Before initiating penalty proceedings the Income tax Officer must enquire whether the assessee was prevented by reasonable cause, accept genuine written explanations without initiating proceedings and record reasons for non initiation. Opportunity to be heard is mandatory; penalty proceedings should ordinarily be completed soon after assessment, typically within six months, and orders levying penalties must be speaking orders supported by adequate reasoning. Penalty registers, progress reports and a prosecution scrutiny column must be maintained. These measures aim to reduce routine, infructuous penalty actions and ensure timely, reasoned disposal.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Penalty initiation guidelines require individual enquiry, hearing, and reasoned orders to curb routine penalty proceedings.
Before initiating penalty proceedings the Income tax Officer must enquire whether the assessee was prevented by reasonable cause, accept genuine written explanations without initiating proceedings and record reasons for non initiation. Opportunity to be heard is mandatory; penalty proceedings should ordinarily be completed soon after assessment, typically within six months, and orders levying penalties must be speaking orders supported by adequate reasoning. Penalty registers, progress reports and a prosecution scrutiny column must be maintained. These measures aim to reduce routine, infructuous penalty actions and ensure timely, reasoned disposal.
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