Monetary limit for the assessment u/s 143(3). - Income Tax - 228/CBDT

INSTRUCTION NO. 228/CBDT Dated: October 7, 1970 Section(s) Referred: 143(3) Statute: Income - Tax Act, 1961 In partial modification of Boards circular No.22-D(V-69) of 1968 dated 25th November 1968 the small Income scheme is further liberalised as under:- i) The monetary limit of Rs.10,000 (Rs.15,000 for the cities of Bombay and Calcutta) referred to in para 2 of the said circular is raised to Rs. 15,000(Rs.20,000 for the cities of Bombay and Calcutta). These limits will also apply to partners cases referred to in para 2(d) of the above mentioned circular. ii) As referred to in para 6(4) of the said circular 10% of the cases with business income between Rs.7,500 and 20,000 to which the scheme applies will be selected for scrutiny in the normal way. The selection will be made on principles to be determined by the commissioner concerned. In laying down the principles for the selection of cases for scrutiny there should be an element of surprise so that the assessee may not be able to anticipate and thereby manipulate their books of accounts. With regard to other cases included in the small Income scheme, a sample check of 2 per cent may be conducted. There is no objection to the Commissioners increasing this percentage if they so desire. iii) So far as the assessments falling within the enhanced monetary limits are concerned in addition to the sample checking referred to in item (ii) above 20 percent of such assessments should be subjected to a test check by the Internal Audit wing of the department. iv) All other conditions continue to be the same as in boards circular no.22-D(V-69) of 1968 dated 25th November 1968. 2. Subject to the above conditions the small Income scheme will continue during the financial year 1970-71. 3. Necessary instructions may please be issued to all the officers in your charge.