Guidelines with respect to disposal of penalty proceedings.

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....a very low priority and that the general trend is to complete these proceedings, often in a hurried manner, only towards the end of the limitation period. It was also found that penalty proceedings were kept pending for a long time even after the relevant assessments had become final and assessees had furnished replies to the show cause notices. 2. Effectiveness of penalties as a deterrent meas....

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....at the rate of disposal is maximised and the pendency is drastically reduced. 4. In Board's order F.No.284/64/77-IT(Inv.) dated 3.6.1985 under section 119(2)(a) of the Income-tax Act, it has been stated that hereforth proceedings u/s 271(1)(a), 271(1)(b) and 273 of the Income-tax Act, 1961 should not be initiated in respect of any assessment year in a case where the maximum amount of penalty im....

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....ssessee and that the penalty order is passed well before limitation. One of the reasons for delay in disposal of penalty proceedings and poor quality of penalty orders is improper record management. There are instances where because of the failure to place in file, assessee's replies to penalty notices, challans, assessee's application for extension of time for furnishing return of income etc., th....