Working of the Summary Assessment scheme. - Income Tax - 1196/CBDT

INSTRUCTION NO. 1196/CBDT Dated : December 27, 1978 Section(s) Referred: 143(1) Statute: Income - Tax Act, 1961 In the recent Commissioners conference a number of suggestions were made regarding the working of the Summary Assessment scheme. These have been examined and Board's decision in respect of each point is indicated below. 2(i) whether it is necessary to fill up the check list in all cases. While verification whether a case is a scrutiny case or not will continue to be made with reference to the check list, it will not be necessary to fill up the check list for each case. However, a rubber stamp is to be put on the order sheet indicating that the case is a scrutiny case or a summary assessment case, as the case may be. (ii) Whether credit for pre-paid taxes could be given on the basis of the counter-foil of challan produced by the assessee. The Board have not accepted the suggestion that the credit for pre-paid taxes should be given on the basis of the challan counter-foils produced by the assessee. The procedure laid down for verification of payments from the daily collection register should be followed in each case. iii) Whether the cases where appeals are pending in respect of earlier years, should be taken out of summary assessment scheme. The Board have decided that if the conditions laid down in Board's instruction No.1072 dated 1st July, 1978 are fulfilled, the case should be treated as a summary assessment case even if appeal for an earlier year is pending. iv) Whether the Commissioners should be allowed to vary the monetary limits for Summary Assessment Scheme in their Charges having regard to the work load etc. The board have decided that the monetary limits as laid down in Instruction NO.1072 dated 1st July 1978 will uniformly apply to all the Charges. v) Whether cases wherein the income returned shows consistent fall from year to year should also be selected for scrutiny. The Board have decided that cases wherein the income returned during the immediately preceding years show substantial fall year after year should be selected as scrutiny cases. 3. The suggestion that in very small cases interest u/s.139,215 or 217 penalty u/s.271(1)(a) or 273 should not be charged/levied is under consideration of the board and instructions will be issued separately. 4. The Board consider the scheme of pre-assessment scrutiny as an essential feature of the summary assessment scheme. The board therefore desire that the scheme of pre-assessment scrutiny must be properly implemented. The scrutiny of such cases has to be thorough. While the purpose of scrutiny is not merely to make routine additions, if G.P. additions are called for, in any case such additions can be made but the same should be supported by adequate data. 5. The cases selected for pre-assessment scrutiny need not be transferred to an I.T.O. other than the one having normal jurisdiction over the case.