Passing of speaking orders u/s 143(3). - Income Tax - 1572/CBDT

INSTRUCTION NO. 1572/CBDT Dated: July 12, 1984 A case has come to the notice of the Board wherein the assessment order passed u/s.143(3)read with sec.144 B of the I.T.Act, 1961, the I.T.O. referring to the directions given by the I.A.C. u/s.144 B, computed the total income by just mentioning the income proposed in the draft assessment order and deducting therefrom the aggregate relief given by the I.A.C. Similarly in some cases, the practice adopted by the I.T.O's is to tag the draft assessment order with the directions given by the I.A.C. U/S.144 B and compute the total income accordingly. 2. Notwithstanding the fact that such assessment orders may not be tainted with illegality, nevertheless, there is no denying the fact that such orders are not speaking orders. The need for a self-contained and speaking order is an obvious pre-condition for it to stand the test of appeal. It is desired that the commissioners may ensure that the tendency of the Income-tax Office to pass such cryptic assessment orders is curbed in order to avoid any criticism by the appellate authorities.