Assessment u/s 143(1). - Income Tax - 212/CBDT

Instruction No: 212 /CBDT Section(s) Referred: 143(1) Statute: Income - Tax Act, 1961 Date of Issue: 29/8/1970 Reference Board's Circular No.22-D(V-69) of 1968 dated the 25th November, 1968 regarding Small Income-Scheme. Clarifications have been asked for by certain Commissioners on the following points. The replies to the points raised are given against each:- POINT RAISED REPLY 1. The word "last assessed income" appearing in the Circular requires certain clarification. According to The suggestion the Departmental practice the word "last assessed income" is accepted. is taken to be as per the last assessment completed on the first day of the financial year. It can also be interpreted as the income last assessed when a particular case is taken for disposal. In order to avoid confusion it is suggested that the meaning of these words may be clarified so that it may be taken as income last assessed as on the first day of the financial year. 2. As per item (d) in para 2 of Board's letter No.22-D(V-69) The following-of 1968 the scheme applies to all assessments of partners provision where income returned is less than Rs.10,000 (Rs.15,000 in may be added Bombay Calcutta). As per item (a), however, if there are to item 2(d) more than one assessment pending and the returned income of the Board for some of the years exceed Rs.10,000(or Rs.15000 as the Circular re- case may be) the assessment cannot be made under the scheme. Referred to It is not clear whether the cases coming under item (d) are above. "Pro- exempted from the restriction mentioned at item (a). This vided that may be made clear. one assessment are pending in a Partners'case and the returned income for any one of these years exceeds Rs.10,000 (Rs.15,000 for the cities of Bombay- and Calcutta) the case will go out of the purview of the scheme". 3. It is stated that Hindi loans or cash credits aggregating to Rs.5,000 can be accepted without enquiry. The suggestion However, it is not clear on what basis this limit of is accepted. Rs.5,000 has been fixed on the basis of the figures given in the balance-sheet. If this be so it may be made clear.