INCOME TAX

INSTRUCTION NO. 1970/1999

 Dated: August 20, 1999

Section(s) Referred: 142(1) ,143(3) ,148

Statute: Income - Tax Act, 1961

Subject : - Selection of cases for scrutiny - assessement of political parties - Instruction regarding.

Reference is invited to Board's Instruction No. 1940 dated 11.6.96 (F.No. 225/70/96/ITA.II) whereby it was conveyed that all assessments of political parties upto assessment year 1996-97 irrespective of whether the returns are filed voluntarily or in response to a notice under section 142(1) or 148 may be completed after scrutiny.

2. Reference is also invited to Instruction No. 1967 dated 7th June, 1999 (F.No. 226/126/99/ITA.I) whereby parameters for selection of cases for assessment under section 143(3) of the Income tax Act, 1961, has been laid down by the Board. These guidelines do not prescribe any criteria for selection of cases for assessment under section 143(3) of the Income tax Act, 1961, in respect of returns filed by political parties. The matter has been considered in the Board and it has been decided that all assessment of political parties irrespective of whether the returns are filed voluntarily or in response to notice issued under section 142(1) or 148 are to be assessed under section 143(3) of the Income tax Act, 1961. This shall apply to all pending returns of political parties where statutory notice under section 143 (2) can be issued now as well as in respect of returns to be received in future.

3. This may be brought to the notice of all concerned.

F. No. 225/128/99/ITA.II

(Kamlesh C. Varshney)
Under Secretary to Govt. of India
Central Board of Direct Taxes