839/CBDT. - Income Tax - 839/CBDT

INSTRUCTION NO. 839/CBDT Dated : June 6, 1975 Section(s) Referred: 143(1) Statute: Income - Tax Act, 1961 Reference is invited to the Board's Instruction No. 289 [F. No. 385/32/71-IT(B)] dated 30-4-71 and instruction No. 349 [F. No 244/3/71-A PAC] dated 3-12-71 on the subject cited above. 2. In this connection attention is particularly invited to para 2(ii) and 3(i) of Instruction No. 349 dated 3-12-71. In view of para 3(i) of Instruction No. 349,a question has been raised as to whether the cases of registered firms with incomes upto Rs. 25,000 are covered under the summary assessment scheme. Para 3(i) of instruction No. 349 reads as under:- "Cases of registered firms with income upto Rs. 50,000 should not be brought under the summary assessment scheme in the charges other than the city charges of Bombay and Calcutta." 3. In the Commissioner's conference held in August, 1971, it was suggested that cases of registered firms with returned/assessed income upto Rs. 50,000 may be permitted to be completed under the summary assessment scheme so as to avoid duplication of work in rectifying the assessments of partners whose cases would be covered under the said scheme. This suggestion was not accepted by the Board and the clarification in para 3(i) of instruction No. 349 was issued in pursuance to this decision. The decision, in fact, was to reject the suggestion for raising the limit for summary assessment from Rs. 25,000 to Rs. 50,000 in the cases of registered firms in all charges. 4. It is clarified that cases of registered firms with income upto Rs. 25,000 (Rs. 50,000 in the city charges of Bombay and Calcutta) would continue to be covered under the summary assessment scheme subject to the fulfillment of the other conditions laid down in Instruction No. 289 dated 30-4-1971. 5. These instructions may kindly be brought to the notice of all the Officers working under your charge.