Assessment scheme. - Income Tax - 1034/CBDT

INSTRUCTION NO. 1034/CBDT Dated : January 18, 1977 Attention is invited to para 7 of the Board's Instruction No. 966** (F. NO. 237/16/76-A PAC-II), dated the 5th July, 1976 regarding summary assessment scheme, wherein it was provided that the cases of partners should as far as possible be assessed in the same Ward/Circle where the firm is assessed as this will reduce rectification work to the minimum. 2. During the course of inspection, it was noticed that a firm having a total income of Rs. 60,000 with six partners having equal share and no other income, the firm's cases as well as the partners' cases were all classified as scrutiny cases. Since the income of the firm was in excess of Rs. 50,000, the firm's case was correctly classified as a scrutiny case, but the cases of the partners do not automatically become scrutiny cases. As a result of this incorrect classification, the disposal quota of the concerned ITO was fixed at a lower figure. 3. It is clarified that although the cases of partners should as far as possible be assessed in the Ward/Circle where the firm is assessed, the cases of all the partners should not automatically be classified as scrutiny cases where the firm's case is classified as a scrutiny case. The partners cases should be classified as scrutiny cases only if they fall within the criteria prescribed for scrutiny assessment vide Board's Instruction No. 966 dated 5-7-76. These instructions may kindly be brought to the notice of all the officers of your charge.