710/CBDT. - Income Tax - 710/CBDT

INSTRUCTION NO. 710/CBDT Dated : July 1, 1974 Section(s) Referred: 147 Statute: Income - Tax Act, 1961 Attention is invited to the Board's instruction No.120 (F.No.5/229/69-IT (Inv) dated the 27th October, 1969 wherein it was stated that reasons recorded before submitting the proposal for initiating reassessment proceedings should conform to the requirements of section 147 of the IT Act, 1961. 2. A reference has been received by the Board from a Commissioner as to whether it would be in order for the Commissioner of Income-tax/Board to approve initiation of proceedings under section 147 on the basis of reasons recorded by an ITO, who is transferred by the time the Commissioner of Income - tax/ Board gives his /its approval to the proposal and even if approval is given in such a case whether it would be proper on the part of the successor ITO to issue a notice under section 148 of the I.T.Act, 1961. The matter has been examined in consultation with the Ministry of Law and Board are advised that it is not necessary for the successor ITO to refer the matter again to the Commissioner of Income-tax or to the Board, as the case may be, for obtaining approval so long as his reasons are not different from those of his predecessor. It would, however, be necessary for the successor ITO not to act mechanically as a result of the approval given by the Commissioner /Board on the basis of predecessor ITO'S proposal. It is necessary for the successor ITO at least to apply his mind to the issue of initiating re-assessment proceedings. The successor ITO should record a note in the file to the effect that for the reasons recorded by his predecessor, he has come to the same conclusion and that the necessary approval by the Commissioner/Board has been obtained for reopening the assessment. 3. These instructions may please be brought to the notice of all officers working in the charge.