Accumulation of tax arrears - exparte assessments u/s 144 of the Income-tax Act, 1961. - Income Tax - 973/CBDT

INSTRUCTION NO. 973/CBDT Dated : July 8, 1976 Section(s) Referred: 143(3) Statute: Income - Tax Act, 1961 One of the main reasons for accumulation of tax arrears has been completion of exparte assessments u/s 144 of the Income-tax Act, 1961 which are normally over-pitched and unreasonable. 2. The provisions of section 144B are applicable only where assessment is being made u/s 143(3) of the Income-tax Act. To avoid framing of unreasonable assessments, it has been decided by the Board that where exparte assessments u/s 144 are proposed to be made and addition to the income involved is rupees 1 lakh or more the case should be discussed with the Inspecting Assistant Commissioner by the Income-tax Officer before finalising the assessment. 3. Necessary instructions in this regard may please be issued to all officers working in your Charge on the above lines.