'Summary assessments'. - Income Tax - 483/CBDT

INSTRUCTION NO. 483/CBDT December 4, 1972 Section(s) Referred: 143(1) Statute: Income - Tax Act, 1961 Reference is invited to Board's Circular letter No.385/78/71.IT(B) dated 21st October,1971 forwarding a copy of the minutes of the Commissioners Conference held from 17th to 20th August 1971. 2. It will be recalled that in relation to the scheme for the disposal of Small Income Cases, it was indicated in the Board's Circular No.22-D(V-69) of 1968 in F.NO.81/114/68-IT(B) dated 25th November, 1968 that if the Revenue Audit raised any objections in principle regarding the individual cases disposed of under the Scheme, the matter was to be brought to the notice of the Board, who were to take up the question of answering such audit objections with the Director of Revenue Audit. As regards the 'Summary Assessment Scheme' introduced w.e.f.1-4-71 the Board's final view is that as summary assessments are being completed according to the provisions of amended Section 143(1) and in accordance with the instructions issued by the Board on the subject, it would not be appropriate to expect the Revenue Audit not to take up the audit of such cases at all in the exercise of their statutory duties. The scope of summary assessments is confined to returned income subject to prescribed routine adjustments and as long as such assessments conform to the legal requirements and the instructions issued by the Board, no criticism need be apprehended from the Revenue Audit. The extent and depth of audit of such cases to be conducted by the Revenue Audit will be decided by the C AG shortly. Even in regard to the cases completed under the 'Small Income Cases Scheme' the Revenue Audit subjected only a small percentage thereof to scrutiny. To the extent however, the Revenue Audit want to scrutinise 'summary assessments' there should be no objection and records etc. should be made available to them.