Office note to indicate tax records. - Income Tax - 473/CBDT

INSTRUCTION NO. 473/CBDT November 15, 1972 Section(s) Referred: 143(3) ,15(3) ,16(3) Statute: Income - Tax Act, 1961 It is often noticed that due to a failure to coordinate I.T. and other Direct Taxes assessments particularly Wealth-tax assessments, income and wealth etc., are liable to escape assessment. The attempt should be in all cases to complete the income-tax and corresponding other tax assessments simultaneously; where, however, it is not feasible for unavoidable reasons, it should nevertheless be ensured that the assessing officer peruses both the I.T and other tax records together before making any of these assessments. This will enable the assessing officer to make a note from other records on such points as may be useful in completing the assessment in hand; useful notes can also be made in the reverse. Thus, for example, if on the income-tax side, the officer finds that the assessee has returned capital gains, he can make a note of this fact in the Wealth-tax record for eventual verification that the asset, on the sale of which the capital gains arose, has been accounted for and secondly whether the value returned vis-a-vis the sale price is correct. 2. In the circumstances, the Board desire that the Commissioners/Inspecting Asstt. Commissioners should ensure that the above procedure is invariably followed and an office note below the assessment order completed by the ITO should indicate that relevant other tax records have been consulted and assessment thereon simultaneously completed of cross notes as may be necessary taken/kept.