Reference u/s144-B to I.A.C. u/s125-Extension of time. - Income Tax - 1405/CBDT

INSTRUCTION NO. 1405/CBDT Dated: July 18, 1981 Board had an occasion to consider the question whether the time for completion of assessment extended by proviso to section 153 in a case where a reference is made by the ITO to the IAC in terms of sec.144 B of the I.T Act continues to be in force when assessment functions over that case, for the year under consideration are assigned to the I.A.C. u/s.125 of the I.T.Act, the board has been advised that extension of time is not available in such a situation. CsIT are therefore requested to verify the pendency of reference u/s.144 B in a case before assigning it to an I.A.C u/s.125. 2. The above provisions would apply MUTATIS-MUTANDIS to a situation where an I.A.C. and ITO held concurrent jurisdiction u/s.125 A of the I.T.Act. In such a situation the I.A.C. should not take on assessment function once he has before him a reference u/s.144-B made by the I.T.O. These instructions may kindly be brought to the notice of all officers under your charge.