INCOME TAX

Disposal of proceedings pending under Ch.XXA

INSTRUCTION NO. 5202/1994

 Dated: January 17, 1994

Section(s) Referred: 269F(7)

Statute: Income - Tax Act, 1961

The Board vide Instruction No. 1793 dated 11-8-1988 (File No. 318/100/87-OT) has prescribed certain guidelines for obtaining a quick disposal of proceedings pending under Chapter XXA of the I.T. Act. These guidelines were prescribed after noticing a heavy pendency of such proceedings and with a view to enable the Competent Authority to concentrate on more important cases after the workload with them comes to a manageable level. The Board desires a summary examination of all the pending proceedings to be made before 31-10-1988 to find cases covered by the guidelines contained in this Instruction and drop acquisition proceedings in such cases.

2. The guidelines prescribed in the above instruction were for the limited purpose of reducing the pendency by a summary examination and do not in any way take away the discretion of the Competent Authority given by section 269F(7). If the Competent Authority after hearing the objections forms an opinion that the property is not fit for acquisition, he can drop the proceedings initiated without taking any recourse to Instruction No. 1793. In such cases where the Competent Authority has already gone into detailed facts of the case and examined the case on merits, a decision to drop the proceedings, can be taken without obtaining any approval from the Board. However, to have an administrative control over such cases, the Competent Authority shall take prior approval from the Chief Commissioner.

3. The above instruction of the Board may be brought to the notice of all the Competent Authorities who should be directed to dispose of all the pending cases of proceedings initiated under Chapter XXA before the close of the current financial year.

F.No. 316A/20/93-OT