Section 144B - pre assessment directions - power - Income Tax - 907/CBDT

INSTRUCTION NO. 907/CBDT Dated : December 24, 1975 Section(s) Referred: 144A ,144B Statute: Income - Tax Act, 1961 Section 144B has been inserted in the Income-tax Act, 1961 through section 45 of the Taxation Laws (Amendment) Act, 1975 with effect from 1st January, 1976. This section empowers the Inspecting Asst. Commissioner to issue pre-assessment directions to the Income-tax Officer. Under the provisions of this section the Income-tax Officer is required to send a draft order of assessment to the assessee in a case in which he proposes to make any addition or dis-allowance in excess of the amount fixed by the Board in this behalf. If the assessee raises any objection to such addition or disallowance proposed by the Income-tax Officer he shall forward the same to the Income-tax Officer within seven days of the receipt of the draft order. The time available for filing of the objection can be extended by the Income-tax Officer on an application made by the assessee by a further period which shall not exceed 15 days. If the assessee intimates acceptance of the proposed variation, or no objection to it is received from him the Income-tax Officer shall complete the assessment on the basis of the draft order. Where on the other hand, any objections are received the Income-tax Officer shall forward the draft assessment order proposed by the Income-tax Officer and the objections raised by the assessee and after examining the assessment records, if necessary, the Inspecting Asst. Commissioner shall issue such directions in respect of the matters covered by the objections as he thinks fit, to the Income-tax Officer to enable him to complete the assessment. Here also, the Inspecting Asst. Commissioner, while issuing any directions which are prejudicial to the assessee, shall give the assessee an opportunity of being heard. The directions issued by the Inspecting Asst. Commissioner in respect of the proposed additions and objections of the assessee thereon shall be binding on the Income-tax Officer. For the purposes of this section the Board is empowered to fix the amount from time to time by an order. Such amount, however, shall in no case be less than Rs. 25,000. The Board is also empowered to fix different amounts for different areas. 2. A copy of the order issued by the Board dated 23rd December, 1975 u/s 144B(6) of the Income-tax Act, 1961 fixing the amount of Rs. 1 lakh with effect from 1st January, 1976 is enclosed.