Notices u/s 143(2) and 142(1) of Income Tax Act. - Income Tax - 1539/CBDT

INSTRUCTION NO. 1539/CBDT Dated: November 29, 1983 Section(s) Referred: 142(1) ,142(2) Statute: Income - Tax Act, 1961 Reference is invited to Board's instructions No.1367 (F.No.201/25/80-ITA.II) dated the 18th November, 1980 Emphasis was laid that the notices under section 143(2) and 142(1) of the Income-tax Act should not be issued by the assessing Officers mechanically and without acquainting themselves in advance as to their requirements. It was pointed out that the prevalent practice of issuing notices indiscriminately causes harassment to the tax-payers and also results in delays in the completion of assessments. The Board had directed that the assessing officers must go through the records in advance and should indicate their requirements while issuing notices under section 143(2)/142(1) of the Income-tax Act, 1961. 2. The Estimates Committee has observed in Para 3.52 (recommendation No.8) of its 29th Report as under: "In pursuance of the Estimates Committee's recommendations made last year in the course of the examination of the subject of the Income-tax Department (para 2.58, 9th Report 1980-81), instructions are stated to have been issued by the Department that alongwith the notices of hearing the Income-tax Officers should send to the assessees lists of points on which they would like the assesses to come prepared for discussions or to produce further information. The Committee regret to find that these instructions are not being properly followed by the Income-tax Officers in actual practice at all places. The Committee would like the Ministry to enforce its instructions in the field and ensure that no notice of hearing is issued without a list of points attached to it." 3. The Board have noted with concern the situation pointed out by Estimates Committee and regret that in spite of instructions, the tax-payers are continuously being harassed by the field officers. You may please direct the field officers working in your charge that they should forthwith stop the practice of issuing notices indiscriminately and without indicating their specific requirements. They should also be warned that if any such case is noticed in future, necessary disciplinary action will be taken against them. 4. The IACs should also be directed that this aspect should be specially kept in view and commented upon by them during the regular, annual, as well as surprise inspections of the work of the Income-tax Officers. 5. The Board desire that each Commissioner of Income Tax should pick up at random five cases per I.T.O. with income over Rs.1,00,000 and inspect whether notices of hearing were accompanied by the list of points on which further information was required or the list of additional documents required by him. 6. A report on the action taken and the result of the inspections may please be sent to the Board.