Reduction of workload of assessing officers. - Income Tax - 1837/1990

INSTRUCTION NO. 1837/1990 Dated: February 8, 1990 The new assessment procedure under section 139 and 143 of the Income-tax Act, 1961 has resulted in an increase in the workload for assessing officers. With a view to reducing this additional workload it has been decided that Inspectors may be directed to assist Assessing Officers in processing cases where the income returned is below Rs.50,000/-. 2. In this connection it may be noted that after a return of income has been filed, any of the following four circumstances under section 143(1) is possible:- i. Cases where no prima facie adjustments are required to be made, and the tax payer has paid the full tax and interest, if any due, on the basis of the income declared by him. No further action in such cases would be necessary. ii. Cases where no prima facie adjustments are made to the returned income/loss, but tax or interest is found to be due on the basis of the income declared, and an intimation is required to be sent to the taxpayer requiring him to pay the amount of tax or interest due from him. iii. Cases where no prima facie adjustments are made and if any refund is due to the taxpayer on the basis of the returned income/loss declared by him and the same is required to be granted without passing any formal assessment order. iv. Cases where prima facie adjustments are made to the total income/loss declared by a taxpayer, in the return of income, and an intimation is required to be sent to the taxpayer intimating to him about the prima facie adjustments so made. If on the basis of the adjusted income, any tax or interest is due from the taxpayer, the same is also to be specified in the intimation and the taxpayer is required to pay such tax or interest. In the event of any refund being due, as a result of the adjusted income, the same is to be granted to the assessee along with the intimation. In cases where the total income, as a result of prima facie adjustments, exceeds the total income declared in the return by any amount, an additional income tax @20% of the tax payable on such excess amount is to be levied. 3. In order to reduce the workload with Assessing Officers, the Chief Commissioners/Director General (Income-tax Exemption/Commissioner/Director of Income-tax (Exemptions) may direct suitable Inspectors of Income-tax in their region/charge to check the returns with declared income upto Rs. 50,000/-. In the cases falling in category (i) in para 2 above the Inspector would certify that there are no prima facie adjustments required, that the calculation of tax and interest has been checked that no tax or interest is due from the assessee. Such certificate would be signed by the Inspector and kept on record. 4. However, if the cases fall in the categories (ii) and (iii) of para 2 above, the inspector may check these returns also. In such cases intimation/refunds would be put up by the inspectors to the assessing officers for signature who would also check the same before signing them. Regarding cases in category (iv) of para 2 above which require prima-facie adjustment the inspector would work out these in the cases examined by him and put up his proposals in this regard to the assessing officer for further necessary action by him. 5. These instructions may be brought to the notice of all officers working in your region.