Proper coordination between Income-tax and other direct taxes assessments. - Income Tax - 592/CBDT

INSTRUCTION NO. 592/CBDT Dated : August 22, 1973 Section(s) Referred: 143 Statute: Income - Tax Act, 1961 Attention is invited to the following Board's Instructions, wherein Commissioners were asked to ensure proper coordination between Income-tax and other direct taxes assessments. No. 172(.4/69/69-ED) 15.5.1970, No.473 (F.236/425/72-A PAC), dated 15.11.72, No.494(F.309/6/72-ED), dated 10.1.73 and No.544 (F.301/126/72-ED), dated 8.5.1973. 2. A case has come to the notice of the Board [vide para 29(i) of C. A.G's Report, 1971-72 in which while computing the tax on Capital Gains, the fair market value of a piece of land as on 1.1.1954 was taken by the I.T.O. at a much higher figure than the value of the land adopted in Estate Duty assessments in the case of assessee's husband who had died. In another case [vide para 40(ii) of C. A.G's Report, 1971-72] the W.T.O. failed to take note of the value of the estate of the unmarried deceased son which devolved on the assessee. 3. The Board take a serious view of the failure to observe the instructions issued from time to time on coordination of relevant tax assessments. This coordination should cover not only the assessee's own cases under the various Direct Taxes, but also of connected cases e.g. of deceased relatives whose estate devolves on an assessee. The Commissioners of Income-tax should impress upon the assessing officers that such coordination must be ensured by them and any lapse in this regard should be seriously viewed.