Evidences in the course of assessment proceedings - systematic analysis and presentation of facts - Income Tax - 600/CBDT

INSTRUCTION NO. 600/CBDT Dated : August 29, 1973 Attention is invited to Board's Instruction No.547 dated 15th May 1973 on the above subject and to state that the Board would like Income-tax Officers to bestow greater care and attention in drafting assessment order, so that the new provisions regulating the production of additional evidence before Appellate Assistant Commissioners are not rendered ineffective by assessees raising the plea that they were not given sufficient opportunity to produce relevant evidence in the course of the assessment proceedings or that they were prevented by sufficient cause or debarred by ITO from producing such evidence. 2. In particular, the Board desire that Income-tax Officers should like not of the following points in dealing with any addition or disallowance which is likely to be contested in appeal. (i) The relevant facts and the points in issue should be stated with clarity. (ii) Where the I.T.O. has called upon the assessee to explain or furnish information on certain points, the assessment order must clearly state the points on which elucidation or information has been called for from the assessee. The assessment order must also clearly show that a reasonable opportunity to explain or adduce evidence on relevant points was allowed to the assessee. For this purpose, the details of the notices or other requisitions issued should be mentioned in the assessment order. (iii) Where the I.T.O. proposes to utilise any information or evidence gathered by him against the assessee he has to furnish the substance of the information or evidence in his possession to the assessee and give him adequate opportunity to rebut the same. In such cases the assessment order must clearly show that relevant information was disclosed to the assessee and that he was given a reasonable opportunity to rebut the same. (iv)The assessment order should clearly indicate the evidence adduced or information furnished by the assessee on his own as also in response to notice given by the Income-tax Officer. If the assessee does not furnish any information or furnishes only incomplete information, this fact should be clearly brought out in the assessment order. (v) The assessment order should then deal with the contention of the assessee, specifying in clear terms the reasons for not accepting the evidence adduced or arguments advanced by him and the grounds for the addition or disallowance. In dealing with any important addition or disallowance, the matters referred to in items (i) to (v) above (in so far as they are relevant for the purposed of that addition or disallowance) must be discussed separately in one or more paragraphs of the assessment order. 3. Proper appreciation of evidence on record and the systematic analysis and presentation of facts on the lines explained in the preceding paragraph will be of considerable help in making fair and well-balanced assessments which will also stand the test of appeal. 4. With a larger number of cases being disposed off in a summary manner, it should be possible for I.T.O.s to draft their orders in Scrutiny cases in the manner detailed above. This procedure may involve some more time at the I.T.O. stage, but its overall impact on assessment work would be to reduce both labour and time taking into account the efforts and actions that follow the assessment; such as Appeals Rectifications, etc. 5. The Board, therefore, desire that these instructions must be adhered to strictly. Commissioner of Income-tax should also request the Appellate Assistant Commissioners to bring to their notice the names of I.T.O.s who habitually disregard the basic points set out in these instructions.