CIRCULAR-LETTER NO: 416(M-T)/72 DATED: 01/02/1972

SROS: CIRCULAR-LETTER NO: 416(M-T)/72 DATED: 01/02/1972 COLLECTION OF OUTSTANDING DEMAND -- IMPOSITION OF PENALTY -- INSTRUCTIONS REGARDING CIRCULAR-LETTER NO: 416(M-T)/72 DATED: 01/02/1972 CENTRAL BOARD OF REVENUE Subject: COLLECTION OF OUTSTANDING DEMAND -- IMPOSITION OF PENALTY -- INSTRUCTIONS REGARDING. It has been noticed by the Board that the collection of arrear and current demand is much below expectations. One of the main reasons for this state of affairs is the large scale laxity on the part of the assessing officers. The Board has no intention to interfere in the discretion of the assessing officers to allow instalments and extensions of time in suitable cases, but at the same time it is of the view that a penalty must be imposed where the assessee, having the means to pay, has not paid the tax. In supersession of all previous instructions on the subject, the Board, therefore, desires that the following instructions must be observed in all suitable cases:-- (i) If the demand is not paid by the date, which should in no case be more than 1-1/2 months from the date of the assessment order, the assessing officer should impose a penalty of 2.5% on the outstanding demand. (ii) No reminders, oral or written, should in any case be issued. In fact the penalty of 2.5% should serve the purpose of a reminder. (iii) The penalty of 2.5% should be intimated to the assessee alongwith a covering letter to say that a penalty of 5%…