743/CBDT. - Income Tax - 743/CBDT

INSTRUCTION NO. 743/CBDT Dated : August 29, 1974 Section(s) Referred: 263 Statute: Income - Tax Act, 1961 The Revenue Audit has brought to the notice of the Board some cases in which proposals were submitted by the ITO to the Commissioner of Income tax for taking action under section 263 to rectify the mistake detected by the ITO, but before the orders could be passed under section 263, the Appellate Assistant Commissioner of Income-tax decided the appeals with the result that no further remedial action was possible and there was irretrievable loss of revenue. 2. The Board are of the view that this could have been avoided if the proceedings taken under section 263 had been finalised in time and had not been kept pending and unduly delayed. The Board desire that the Commissioner while examining any case for action u/s 263, should invariably verify whether there is any appeal against the ITOs order pending with the Appellate Assistant Commissioner of Income-tax. Where such pendency is noticed the Commissioner should take up these proceedings and complete them expeditiously before the appeal is decided by the Appellate Assistant Commissioner of Income-tax. 3. If found necessary, the Commissioner of Income-tax, may direct the ITO to request the Appellate Assistant Commissioner of Income-tax concerned to adjourn the hearing of the appeal till such time as the contemplated action under section 263 is completed.