719/CBDT. - Income Tax - 719/CBDT

INSTRUCTION NO. 719/CBDT Dated : July 20, 1974 Section(s) Referred: 24(2) of Gift Tax Act , 16 of Surtax Act , 25(2) of Wealth Tax Act Statute: Income - Tax Act, 1961 Reference is invited to the last paragraph of Instruction No. 584 (F.No. 236/237/72-A PAC) dated 9-8-1973, on the subject. 2. Inspite of the aforesaid instructions, instances have come to the notice of the Board where remedial action has been initiated u/s 13 of the Surtax Act to give effect to audit objections where the matter could be said to be controversial. In such cases, orders u/s 13 may not be upheld on appeal on the ground that the issue involved is arguable on which there may conceivably be two opinions. This results not only in waste of errors, but may also lead to ultimate loss of revenue. 3. The Board, therefore, desire that wherever remedial action is contemplated to give effect to audit objections, the provisions of section 16 of the Surtax Act Section 25(2) of the Wealth-tax Act and Section 24(2) of the Gift-tax Act should be invariably invoked wherever possible unless other simpler proceeding are clearly applicable. This may be brought to the notice of all officers in your charge.