647/CBDT. - Income Tax - 647/CBDT

INSTRUCTION NO. 647/CBDT Dated : January 11, 1974 Section(s) Referred: 171(3) Statute: Income - Tax Act, 1961 I am directed to say that the Board has examined the question whether when an Income-tax Officer makes a determination of a claim for partition u/s 171 of the Income-tax Act, it is sufficient if it is noted on the file or should it he communicated to the persons concerned. 2. Section 171 requires that when a claim of partition, whether total or partial, is made, the Income-tax Officer shall make an enquiry, after giving notice to all the members of the family. On the completion of the enquiry, the Income-tax Officer is required to record a finding as to whether there has been a total or partial partition of the joint family property. It is true that section 171(3) uses the words "record a finding". In this connection it has also to be pointed out that section 246 of the Income-tax Act expressly makes an order u/s 171 of the Income-tax Act, 1961 appealable. From such an order, an appeal lies. The right to file an appeal, therefore, would be nullified if the finding of the Income-tax Officer in this regard is not communicated to the party. The Board in consultation with the Ministry of Law has decided that Income-tax Officer should pass an order u/s 171(3) and communicate it to the assessee concerned. 3. Necessary instructions may kindly be issued to the Income-tax Officers working in your charge.