CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018
51. Empowering Board to issue directions in respect of penalty for failure to deduct or collect tax at source.
51.1 The provisions of clause (a) of sub-section (2) of section 119 of the Income-tax Act empower the Board to issue orders setting forth directions or instructions (not being prejudicial to assessees) to be followed by subordinate authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties.
51.2 In order to reduce the genuine hardship which may be faced by a person responsible for deduction and collection of tax at source due to levy of penalty under section 271C or 271CA, reference to the aforesaid sections has been inserted in clause (a) of sub-section (2) of section 119 of the Income-tax Act, to empower the Board to issue directions or instructions in respect of the said sections also.
51.3 Applicability: The amendment takes effect from 1st April, 2017.