Clarifications with respect to Sec.139(10). - Income Tax - 1744/CBDT

INSTRUCTION NO. 1744/CBDT DAted: January 21, 1987 Attention is invited to the provisions of sub-section 10 of Section 139 of the Income-tax Act, 1961 as inserted by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986. The new sub-section provides that a return of income showing the total income below the maximum amount which is not chargeable to tax shall be deemed never to have been furnished. The proviso to this sub-section enumerates the circumstances in which a return of income below the taxable limit shall not be treated as nonest. This provision is deemed to have been inserted with effect from 1-4-1986. 2. The Board have examined the issue which are likely to arise while implementing the new provision and it is considered desirable to clarify the following points :- (i) since all returns filed on or after 1-4-1986 which are below the taxable limit are to be considered invalid, barring the exceptions contained in the proviso to the sub-section, such returns should not be acted upon. Suitable instructions may be issued to the officers in this regard; (ii) Adequate publicity may be given to the new provisions so that the general public are aware that such returns will not be acted upon : (iii) The amended provisions would apply to returns which have already been filed on or after 1-4-1986. Therefore, where the pendency of such returns is already included in the Monthly Progress Report, these have to be identified and removed from the work load. The pendency in the Monthly Progress Report has to be accordingly revised; and (iv) Similarly, such returns, already entered in the Blue Book i.e. Income-tax Officer's Control Register would have to be identified and removed from the pendency. 3. These instructions may be brought to the notice of all the Officers working under you.