At present before levying a penalty under Section 271 (1) the officer is required to record the reasons for believing that there is a willful misrepresentation by the assessee -a detailed statement on the reasons has to be noted in files. The same may be considered by higher authorities including courts for that justification. The minimum penalty is 100 per cent of amount concealed and the maximum is 300 per cent of the amount concealed.
It is now proposed to make retrospectively (wef April 1, 1989) that under Section 271 (1) penalty can be levied by the Income Tax officer on amount of disallowance without recording the reasons for it.
This provision is like punishing a person without Court's trial! As such it is most unjustified and bad in law. Also, it shall open more opportunities for harassment and corruption, both.
This proposed amendment must be dropped in public interest.
Mahesh Kapasi, Via e-mail
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