Exercise due care in allowing deductions and in checking the data given in the return forms. - Income Tax - 384/CBDT

INSTRUCTION NO. 384/CBDT Dated: February 23, 1972 Section(s) Referred: 16(3) Statute: Wealth Tax Act, 1957 Attention of the Commissioners is invited to Board's letter F. No. 326/8/(15)/57-WT dated the 9th November 1970 wherein it was desired that the assessing officers should be instructed to exercise due care in allowing deductions and in checking the data given in the return forms etc., vide para 2.118 of 117th report of the Public Accounts Committee. 1969-70. 2. It has been brought to the notice of the Board by the Revenue Audit that in a number of cases W.T. payable on the net wealth was wrongly calculated due to incorrect adoption of the prescribed basic exemption. Even though through the amendment brought about by Section 36 of the Finance (No. 2) Act, 1971 the basic exemption has been withdrawn, it is emphasised that for assessments upto the assessment year 1971-72 the basic exemption prescribed for Individuals and HUF should be allowed with proper care. In some cases reviewed by the Revenue Audit the prescribed limit upto which W.T. is not payable, had been wrongly adopted by the assessing officers whereas in some other cases either the basic exemption was allowed twice or the exemption limit prescribed for HUF had been allowed to Individuals. All this has caused loss of revenue. 3. The Board, therefore, desire that you kindly ensure that the assessing officer do not commit above noted mistakes.