Reassessment proceedings u/s 147 of Income-tax Act, 1961. - Income Tax - 970/CBDT

INSTRUCTION NO. 970/CBDT Dated : July 8, 1976 Section(s) Referred: 147 ,148 Statute: Income - Tax Act, 1961 The Board have re-examined Instruction No. 719* [F. No. 289/126/73-IT(Inv.)] dated 1st July, 1974 on the above subject and have modified the last two sentences of para 2 of the said Instruction. 2. The modified Instruction would now read as under:- "Attention is invited to the Board's Instruction No. 120** [F. No. 5/229/69-IT(Inv.)] dated the 27th October, 1969 wherein it was stated that reasons recorded before submitting the proposals for initiating reassessment proceedings should conform to the requirements of section 147 of the Income-tax Act, 1961. A reference has been received by the Board from a Commissioner as to whether it would be in order for the Commissioner of Income-tax/Board to approve initiation of proceedings u/s 147 on the basis of reasons recorded by an Income-tax Officer, who is transferred by the time the Commissioner of Income-tax/Board gives his/their approval to the proposal and even if approval is given in such a case whether it would be proper on the part of the successor Income-tax Officer to issue a notice u/s 148 of the Income-tax Act, 1961. The matter has been examined in consultation with the Ministry of Law and the Board are advised that it is not necessary for the successor Income-tax Officer to refer the matter again to the Commissioner of Income-tax or to the Board, as the case may be, for obtaining approval so long as his reasons are not different from those of his predecessor. It, would, however, be necessary for the successor Income-tax Officer not to act mechanically as a result of the approval given by the Commissioner/Board on the basis of the predecessor Income-tax Officer's proposal. It is necessary for the successor Income-tax Officer to apply his mind to the issue of initiating reassessment proceedings. If the successor Income-tax Officer after examination of the facts of the case comes to the same conclusion as arrived at by his predecessor, he should record the same in the file and also the fact that the necessary approval by the Commissioner/Board has been obtained for reopening the assessment." 3. These Instructions as modified above may please be brought to the notice of all Officers working in your charge.