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TMI Blog1984 (4) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ably because no such claim was made either in the return of income or during the course of the assessment proceedings. The ITO, accordingly, treated the company as one in which the public were not substantially interested and levied the tax at the rate of 65 per cent as applicable to a closely-held non-industrial company. " 2. The assessee made a request to the ITO to charge correctly the rate of tax which, according to the assessee, was 60 per cent and which the ITO has charged at 65 per cent. The assessee contended that it was carrying on manufacturing activities of construction of building. His request was negatived and on appeal, the learned first appellate authority upheld the assessing officer's order, inter alia, on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of, this Act in respect of the total income of the previous year or previous years, as the case may be, of every person : Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly. (2) In respect of income chargeable under sub-section (1), income-tax shall be deducted at the source or paid in advance, where it is so deductible or payable under any provision of this Act. " 4. Since t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The income-tax law is generally said to be real complex in nature and an assessee cannot be said to be well conversant with the provisions of the law, more so, when each year, with every Finance Act there are amendments and amendments and perhaps it is for this reason that as early as in the year 1942 [1955] the Board vide Circular No. 3, dated 16-1-1942 [Circular No. 14 (XL.35), dated 11-4-1955 ---See Taxmann's Direct Taxes Circular, 1980 Edn., Vol. 1, p. 920] issued administrative instructions in regard to the attitude of the department in matters affecting the assessee's interest, in the following terms : " 549. Administrative instructions in regard to the attitude of the department in matters affecting assessee's interest.---1. The B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refunds and reliefs rates with assessees on whom it is imposed by law, officers should : (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other ; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. 4. Public Relations Officers have been appointed at important centres, but by the very nature of their duties, their field of activity is bound to be limited. The following examples (which are by no means exhaustive) indicate the attitude which officers should adopt : 1. Section 17(1) [section 113 of the 1961 Act] --- While dealing with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting for an assessee to point them out. 7. Section 60(2) [sections 89(1) and 103 of the 1961 Act] --- Cases where relief can properly be given under this sub-section should be reported to the Board. 5. While officers should, when requested, freely advise assessees the way in which entries should be made in various forms, they should not themselves make any in them on their behalf. Where such advice is given, it should be clearly explained to them that they are responsible for the entries made in any form and that they cannot be allowed to plead that they were made under official instructions. This equally applies to the Public Relations Officers. 6. The intention of this circular is not that tax due should not be charged or that any f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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