Tax calculations be indicated in the assessment order. - Income Tax - 1126/CBDT

INSTRUCTION NO. 1126/CBDT Dated : December 19, 1977 Section(s) Referred: 143 ,144 Statute: Income - Tax Act, 1961 The Board vide F.No.28/16/64-IT(A.II), dated the 27th September, 1967 issued the following instructions:- (a) In the case of companies, the details of tax calculations should be indicated in the assessment order itself. (b) In the non-company small-income cases i.e., cases in which the income assessed is below Rs.15,000, the details of tax calculations should be indicated on the reverse side of the demand notice. (c) In other non-company cases i.e., cases in which the income assessed is over Rs.15,000 a copy of form ITNS- 150 should be invariably sent to the assessees along with the Demand notices. 2. Instances have come to the notice of the Board where the Income-tax Officers have not followed the above instructions. The J K High Court in the case of Syed M.S.Naqashbandi V/s C.I.T.(110 ITR.217) had an occasion to consider the question of furnishing the details of the tax calculations and rebates to the assessee. It has been held that the assessment order which does not mention the tax payable by the assessee is vitiated by an infirmity as under the existing provisions of sub-section (1) or (3) of section 143 or section 144 of the Income-tax Act, 1961, it is necessary that the tax payable by the assessee should be indicated in the assessment order by the Income tax Officer. It has further been held that the mention of the tax determined in the demand notice is not a sufficient compliance with the provisions of the Income-tax Act, 1961. Though this decision has not been accepted, the Board desire that the Income-tax Officer should invariably indicate the tax chargeable/payable in the assessment order or refer to ITNS-150/150A, a copy of which should accompany the assessment order. 3. The instructions referred to in para 1 above are modified as under:- (a) In the case of companies, the details of tax calculations should be indicated in the assessment order, itself. (b) In cases falling within the Summary Assessment Scheme as detailed in Board's Instruction No.1072 (F.No.237/16/76-A PAC.II), dated 1st July, 1977, ITNS-150 need not be sent along with the assessment order as the details of the tax chargeable and payable are incorporated therein. (c) In cases not covered by the Summary Assessment Scheme, the Income-tax Officers should invariably mention in the assessment order that the tax has been determined as per ITNS-150, a copy whereof should be sent to the assessee. 4. The Income-tax Officers should be instructed to follow the aforesaid instructions scrupulously.