Procedure for speedier disposal of income tax assessments. - Income Tax - 1617/CBDT

INSTRUCTION NO. 1617/CBDT Dated: May 12, 1985 During the Commissioners Conference 1985 certain recommendations were made to speed up the disposal of income-tax assessments with the manpower available and to reduce the ever increasing backlog. The recommendations made in this conference have been examined by the Board and an directed to say that in supersession of all existing instructions on the subject, the following procedure will now be adopted. 2. Assessments in the following types of cases will be completed u/s.143(1) of the Income-tax Act, 1961 on the basis of the returns after linking with the assessment records: (a) All cases other than company and trust cases with returned income/loss upto Rs.1 lakh. (b) Company cases with returned income/loss upto Rs.25,000 and paid up capital not exceeding Rs.5 lakhs, however, first assessment in all new company cases will be a scrutiny assessment. (c) All trust cases and cases of charitable institutions having income below Rs.1 lakh before applying the provisions of section 11 of the Act provided the corpus of the trust does not exceed Rs. 5 lakhs. However the first assessment in all trust cases will be a scrutiny assessment. 3. In the above cases the arithmetical accuracy of computation of total income and taxes will be ensured and liability for penalty, interest C.D.S. etc. if any, will also be checked. No other checking of any sort will be necessary. All pending assessments in such cases will also be completed in the same manner along with the current assessments. 4. However cases assigned to I.A.Cs (Assessment)/Central circles Special Investigation circles, Special circles, search and seizure cases cases re-opened under sec.147 and those selected for scrutiny on a random sample basis etc. will not come under the purview of this scheme. 5. All other cases (i.e. cases where the assessments are not to be completed in a summary manner will be dealt with under the normal procedure of law. 6. When assessments in cases mentioned in para 2 above are completed u/s.143(1) resulting in nil demand/refund will be issued in the attached form. The intimation may be got printed in the form of an inland letter and issued after writing the name and address of the assessee. 7. Summary and scrutiny cases should be entered separately in the demand collection registers. 8. The initiation of penalty proceedings/completion of penalty proceedings already initiated will be governed by the instructions which are being issued separately. However interest under the relevant provisions will be levied. 9. 5% of the cases where assessments are completed in a summary manner will be taken up for scrutiny on a random sample basis. The Commissioners shall lay down the random number and the I.T.O's should complete selection of cases for random scrutiny by 31st August of the year. This should be done under the supervision of the I.A.C. The number of cases so selected and disposed of should be shown separately in the CAP-II statement. The instructions laid down for competition of assessments in cases selected for scrutiny on random basis will continue to be observed. 10. The above instructions will come into effect immediately. These may kindly be brought to the notice of all the officers working in your charge.