Audit objections. - Income Tax - 1291/CBDT

INSTRUCTION NO. 1291/CBDT Dated : November 30, 1979 Kindly refer to the Board's Instruction No.1179**, dated 23rd May, 1978 (F.No. 237/2/78-A7PAC-ii). 2. It has been brought to the notice of the Board that many proceedings started u/s 148 of the I.T. Act after receipt of the audit objections have been dropped on the ground that the Supreme Court has held in the case of Indian and Eastern Newspaper Society that the audit objections did not constitute information for the purpose of reopening the assessments u/s 147. The exact scope of the Supreme Court decision is under consideration in consideration with the Ministry of Law. Pending that, the ITOs should be instructed not to drop action already initiated u/s 147 on the ground that assessment proceedings were re-opened on the basis of audit objection. 3. Whenever remedial action is to be taken in future if possible action u/s 263 should be taken in preference to that u/s 147(b).