Procedure for speedier disposal of assessments to reduce backlog. - Income Tax - 1566/CBDT

INSTRUCTION NO. 1566/CBDT Dated: June 21, 1984 During the Commissioners conference, 1984, certain recommendations were made to speed up the disposal of income-tax assessments with the manpower available and to reduce the ever increasing backlog. The recommendations made in this conference have been examined by the Board and I am directed to say that in supression of all existing instructions on the subject, the following procedure will now be adopted:- (1) The present categorisation of the cases into summary and scrutiny is done away with. Instead, they will be divided into 2 classes, namely; (i)salary cases with returned income of Rs.50,000 or less and other cases with returned income of 25,000 or less; and (ii) Other cases. (2)Assessments of cases 1(i) above will be completed on the basis of the return after linking it with the assessment records. No. checking of any sort will be necessary in such cases. All pending assessments in such cases will also be completed in the same manner along with the current assessment. However, cases selected for scrutiny like those assigned to IACs(assessment), Central circles, Film Circles, Special Investigation Circles, Special Circles and cases of companies, trusts, charitable institutions, loss cases, search and seizure cases and cases re-opened under sections 147 etc. will not come under the purview of this scheme. (3) There will be two return receipt counters. In one, returns of income upto Rs.25,000 and below and salary cases with an income up Rs.50,000 will be received and in the other, returns in respect of other cases will be received. This will ensure that returns which are to be assessed in a summary manner are seggregated at the receipt stage itself. (4)When assessments are completed in cases falling under 1(i) above and there is no additional demand or refund, demand notices and copies of assessment orders will not be issued, but an intimation that the assessment has been completed resulting in 'nil' demand/refund will be issued in the attached form. This intimation may be printed in the form of an inland letter so that after writing the name and address of the assessee, they could be issued. (5) Two demand and collection registers will be maintained in respect of assessments completed under schemes 1(1). In the first register, all case where the returned income is Rs.15,000 or less, will be entered; and in the other, all others. where assessments are completed by Inspectors these cases should be entered in a separate part of the register so that the number completed by the inspector and the I.T.O. could be separetely ascertained. (6) No penalty proceedings will be initiated in cases completed under 1(i) above under sections 271(1)(a) and 273 if the returns are filed before 30th September of the assessment year. In respect of pending penalty proceedings in such cases, they may be dropped if the relevant returns have been filed before the end of the assessment year concerned. However, interest under the relevant provisions will be levied. (7) 5 per cent of the cases completed in the above manner will be taken up for random scrutiny commissioners may laid down the random number so that the ITO s can select the cases for random scrutiny. The instructions laid down for completion of assessments selected for scrutiny on random basis will continue to be observed. (8) All other cases (i.e. cases where the assessments are not to be completed in a summary manner), will be dealt with under the normal procedure of law. 2. The above instructions will come into force with immediate effect. They may please be brought to the notice of all the officers working under you. (SPECIMEN OF THE ASSESSMENT ORDER) P.A.NO. OFFICE OF THE INCOME-TAX OFFICER Dated the ............ Dear sir/Madam, Reg:Your Income-tax Assessment for the assessment year 1984-85. Kindly refer to the income-tax return filed by you for the assessment year 1984-85. 2. Your income-tax assessment for the aforesaid assessment year has been completed under sec.143(1) on the returned income and no additional demand has been raised. Yours faithfully, (Income-tax Officer)