Penalty initiation threshold raised; routine penalty proceedings curtailed and pending minor cases to be dropped.

Instruction No.1622/CBDT requires that penalty proceedings be initiated only after application of mind and establishment of a prima facie case, with return annotations and other records considered; it increases the administrative de minimis threshold for commencing penalty actions and directs that pending proceedings below that threshold be dropped. Officers must record a footnote when penalty is not pursued, issue self speaking well reasoned orders when penalty is levied, and avoid cyclostyled printed penalty orders.

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