Amendment status not verified — confirm the current text below against the official source.
(1) Whereas aresultofany proceedingstheamount oftax has been wholly reduced, increase of and a penalty has been levied with reference to such tax, the penalty so levied shall be reduced pnally in cedain cases. to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such tax.(2) If a person is liable to pay a penalty under sub-section (11) of section 86, and the person voluntarily discloses in writing to the Commissioner the tax deficiency,- (a) the amount ofthe penalty leviable under this Regulation shall be reduced by eighty per cent. of such penalty if such disclosure is made before the Commissioner issues the notice under section 58 for conducting of the audit ofthe business affairs of such person; SERIES - I No. : 05 DATED 18~'' AUGUST, 2005. (b) the amount ofthe penalty leviable under this Regulation shall be reduced by fifty per cent. of such penalty if such disclosure is made after the Commissioner has issued thenotice under section 58 for conducting ofthe audit of the business affairs of such person. '1 (3) Ifthe taxdeficiency has arisen in pursuance ofdetermination by the Commissioner under section 84 or ruling given under section 85 and in pursuance of such determination or ruling, a person has become liable to pay a penalty under sub-section (11) of section 86, the amount ofthe penally payable under this Regulation shall be reduced to nil and ifthe penalty has already been paid, it shall be refunded within two months ofthe reduction of such tax. (4) Where penalty under this Regulation has been imposed upon a person and such penalty has not been reduced by any authority orAppellateTribunal or court and has become final, and such person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure or default occurring on another occasion (in this section called th8 "subsequent offence"), the penalty leviable under this Regulation shall be increased by- (a) in the case of the first subsequent offence, fifty per cent. of the penalty leviable under this Regulation; and (6) in the case of the second and any further subsequent offence, one hundred per cent. of the penalty leviable under this Regulation.