Assessment of time-barring. - Income Tax - 189/CBDT

INSTRUCTION NO 189/CBDT, Dated: July 6, 1970 The Public Accounts Committee has made the following recommendations in para 1.12 of its 100th Report regarding pendency of category I cases:- "The data furnished to the Committee also shows that the pendency in category I cases, which relate to the higher income brackets, and risen from 1.64 lakhs as on 31st March, 1968 to 1.94 lakhs as on 31st March, 1969. These are the cases with revenue potentiality which merit greater attention from the Department. The Committee hope that Government will draw up a suitable programme of priorities to ensure that ITOs devote adequate time to the examination of cases involving larger revenue". 2. The Board have carefully considered the question of drawing up a suitable programme of priorities for the disposal of Category I assessments. During the current year all the assessments relating to the assessment year 1966-67 will have to be finalised to save the time bar whereas during the financial year 1971-72 there would be three time-barring assessments viz. assessments relating programme is drawn up for the disposal of these assessments the ITOs may not be able to devote adequate time to the examination of cases involving larger revenue, during the financial year 1971-72. In order to avoid such a contingency the Board have decided that a large number of category I assessments for the assessment years 1966-67 and 1967-68 should be disposed of during the year itself. This will normally leave behind only the time-barring assessments for 1968-69 and 1969-70 for disposal during the year 1971-72. You may, therefore, take immediate steps to ensure that the above instructions are implemented and the pendency of category I cases is brought down considerably by the end of 1970-71.