Income-tax Officers should record a confidential note in the order sheet in all cases where the income returned by the assessee is less than 80% of the income assessed - Income Tax - 879/CBDT

Instruction No: 879/CBDT Date of Issue: 25/9/1975 Section(s) Referred: 271(1)(c) Statute: Income - Tax Act, 1961 Reference is invited to para 98 of Board's Circular F. No. 1 (252)/64-TPL dated 7-7-1964 wherein it was advised that the Income-tax Officers should record a confidential note in the order sheet in all cases where the income returned by the assessee is less than 80% of the income assessed (as reduced by any disallowances of bonafide expenditure to section 271(1)(c) indicating the reasons for not doing so. These instructions were reiterated in the Board's Instruction* No. 607(F. No. 284/41/73-IT(Inv.), dated 1st January, 1973), copy printed below. 2. It has come to the notice of the Board that these instructions have not been followed in some cases. Board desire that these instructions should be strictly followed. In the event of any lapse in following these instructions, appropriate action may please be taken against the erring officers.