Summary assessment. - Income Tax - 1361/CBDT

INSTRUCTION NO. 1361/CBDT Dated: October 14, 1980 Attention is invited to Instruction No.1349 dated 3rd September 1980 on the above subject. References have been received from the CsIT on the subject seeking clarifications. These have been considered and instructions of the Board on the issues raised are set out below:- All cases except those following in the revised Annexure B to chairman's D.O.letter dated 23rd May, 1980 and cases coming u/s.44AA where no accounts are maintained will be cases for summary assessments. Reference is invited to letter F.No.17/1/80-OD-DO MS dated 20-6-80 from Director, O MS which mentions the type of company assessments which could be treated as summary assessments. All earlier instructions on the subject stand superseded in the light of the clarifications. All cases other than those falling in the list will be summary assessments. This will apply to salary cases also. The cases with income of Rs.25,000 and below of all assessees and being assessed in Film Circles can also be completed in the summary assessments scheme with the only exception of no account cases under sec.44AA as answered in para 1 above. Once a notice u/s.143(2) has been issued for a particular assessment year, the assessment will have to be made u/s.143(3). Where no action has been taken either u/s.142(1) or 142(2) the case will become summary or scrutiny in the light of the revised Annexures to chairmans D.o. letter dated 23rd May 1980. ITOs should be very careful not to issue notices u/s.142(1)/ 143(2) without proper check that it is not a summary assessment case. IACs should also exercise a close check on this aspect frequently by looking into files. Once the returned income is above Rs.1 lakh it will be a scrutiny case for that year. IF a firm is assessed by the ITO, it is he who will make the assessment of the partners in his charge. In a reverse case where the assessment of the firm is made by the Inspector he can make a summary assessment in the partners cases also provided the partners cases do not cross the limit of Rs.25,000. The Board have decided that the present instructions limiting deployment of Inspectors to the head quarters of Commissioners will continue without any relaxation. The draft notification enclosed with Board's Instructions No.1349 clearly mentions functions u/s.156 as one to be performed by authorised Inspector in defined cases. A stamp may be used by the authorised Inspector indicating that he has been authorised u/s.125(1)(b).