Revision of assessments in consequence of the Appellate orders. - Income Tax - 391/CBDT

INSTRUCTION NO. 391/CBDT Dated: March 3, 1972 Attention is invited to Board's instructions issued vide their letter F.No. 36/5/64-IT(AI) dated 4th June, 1964 suggesting certain remedial measures for the avoidance of recurrence of the irregularities commonly committed by the Income-tax Officers. In their letter bearing the same number dated 18th July, 1964, the Board further directed that where the tax effect as a result of revision of assessments consequent on appellate orders exceeded rupees one lakh, the Income-tax Officer should take prior approval of the Inspecting Assistant Commissioner. Copies of Board's letter dated 4th June, 1964 and 18th July, 1964 are enclosed for ready reference. 2. The Board desire that in respect of wealth-tax and Gift-tax cases also, the Inspecting Assistant Commissioner of Income-tax should, in the course of his inspections, take up verification of the Wealth-tax Officer/Gift-tax Officer's orders giving effect to appellate decisions which involve a reduction in the net wealth/amount of gift exceeding Rs. 1 lakh. It is also desired that in all cases where, as a result of the revision of assessments in consequence of the Appellate orders, the wealth-tax/gift-tax involved exceeds Rs. 1 lakh, the Wealth-tax Officer/Gift-tax Officer should take the prior approval of the Inspecting Assistant Commissioner of Income-tax before giving effect to the appellate orders.