Settlement of disputes between I.T. Department and public sector undertakings. - Income Tax - 456/CBDT

INSTRUCTION NO. 456/CBDT Dated: September 21, 1972 On a reference from the Bureau of Public Enterprises, the Board considered the question relating to the settlement of disputes between the I.T. Department and the public sector undertakings. It was found that many a time there has been protracted litigation between the I.T. Department on the one hand and the public sector undertaking on the other. This has resulted in waste of public money and also time of Government in defending such cases. 2. In order to put an end to such avoidable waste of money and energy the Board has decided that if there is any difference of opinion between the public sector undertaking and the I.T. Officer assessing the same, the following procedure should be adopted:- (a) Questions of law for which there is no precedent and which would affect similar cases, or where law requires to be established by High Courts may be allowed to take the normal course of appeals; (b) Questions of interpretation and application of law as settled by the existing rulings of courts and questions of facts can be decided by the Cs. I.T. and the public sector undertaking. The Board may refer the matter to Ministry of Law and Attorney General, if need be, and decide the issue instead of having it resolved through the time-consuming machinery of Income-tax Appellate Tribunal, High Courts and Supreme Court. 3. Necessary instructions may be issued to all officers working under your charge to follow these instructions.