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2005 (1) TMI 32 - HC - Income TaxCommissioner taking action u/s 263 - summary assessment scheme - It may be mentioned here that in Circular No. 176 dated August 28, 1987, the Board had given instructions to CITto the effect that no remedial action is necessary in summary assessment cases, as the revenue loss, if any, is consciously suffered by the Government to utilise resources for scrutiny and investigation of larger cases. In such cases the Commissioner of Income-tax should only inform the audit that the cases are completed under the summary assessment scheme. Accordingly, action u/s 263 was not to be taken. It is well settled that the circulars issued by the Board are binding upon the authorities and, therefore, in any view of the matter, the Commissioner was not justified in initiating proceedings u/s 263 in respect of the assessments completed u/s 143(1) - Tribunal was right in holding that there were no material before the Commissioner of Income-tax to justify his finding that the assessment made under section 143(1) was erroneous in so far as it was prejudicial to the interests of the Revenue
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