Scope of Comm.'s advice to subordinate officers in complicated matters. - Income Tax - 1692/CBDT

INSTRUCTION NO. 1692/CBDT Dated: February 13, 1986 In the Board's Instruction No. 114 [F.No. 49/69-IT (INV)] dated the 30th September, 1969, it was clarified, inter alia, that Section 271(4A) did not contemplate making of assessments and levy of taxes on the basis of contract or agreement between the assessee and/or the Commissioners giving the assessee assurances in the matter of penalty and prosecutions. 2. But in the spirit of the assurances given by the Finance Minister and Circulars No. 432, dated 20-9-85 and Circulars Nos. 439,440 and 441, dated 15-11-85 issued by the Chairman, it may be necessary for the Commissioners to give advice to ITOs in terms of Para 3 of the Instruction No. 1433, dated 26-11-81, which is reproduced below :- "The Board also examined a reference regarding the lack of statutory power for settlement of cases by the Commissioners. Under section 119(3) of the Income-tax Act, the Commissioner of Income-tax can give only general guidance to an Income-tax Officer. The question of amendment of law to give Commissioners the power to direct Income-tax Officer to complete a particular assessment or pass any other statutory order in the manner laid down by him is under consideration. Pending amendment of the law, the existing practice of Commissioner giving advice to the subordinate officers in the disposal of complicated matters, thus giving then the benefit of their experience may continue. This advice should be kept in view by the authority concerned in coming to a decision on the merits of the case in the light of his own judgement. While there can be no objection to such authority adopting the reasoning contained in the advice as his own, quoting or referring to the advice in the order that may be passed should be avoided." 3. Similarly, whether a disclosure was voluntary or not for the purposes of Section 273A could also be judged from the replies to specific queries given in same Instruction No. 1433, dated 26th November, 1981 [F.No. 281/44/80-IT(NV)].