Penalty proceedings must be initiated only in liable cases and completed after proper enquiry and hearing. Instruction No.1364/CBDT mandates that penalty proceedings be initiated only after an enquiry of the assessee and acceptance of genuine explanations without further inquiry where warranted; proceedings must not be mechanical, trivial penalties should be avoided, assessees must be given a reasonable opportunity to be heard, penalty proceedings ordinarily completed within six months of assessment, and penalty orders must be speaking orders reflecting due consideration. Supervisory monitoring using the penalty register, MPR and six-month control statements is required, and the instruction applies mutatis mutandis to Wealth Tax, Gift Tax and Estate Duty proceedings.
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 proceedings must be initiated only in liable cases and completed after proper enquiry and hearing.
Instruction No.1364/CBDT mandates that penalty proceedings be initiated only after an enquiry of the assessee and acceptance of genuine explanations without further inquiry where warranted; proceedings must not be mechanical, trivial penalties should be avoided, assessees must be given a reasonable opportunity to be heard, penalty proceedings ordinarily completed within six months of assessment, and penalty orders must be speaking orders reflecting due consideration. Supervisory monitoring using the penalty register, MPR and six-month control statements is required, and the instruction applies mutatis mutandis to Wealth Tax, Gift Tax and Estate Duty proceedings.
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