INCOME TAX

INSTRUCTION NO. 1972/1999

 Dated: September 7, 1999

Section(s) Referred: 143(3) ,133A

Statute: Income - Tax Act, 1961

Subject : - Selection of cases for assessment under section, 143(3) of the Income tax Act, 1961 - Instruction regarding

Reference is invited to Board's Instruction No. 1967 dated 9th June, 1999 (F.No. 226/126/99/ITA.II) and Instruction No. 1970 dated 20th August, 1999 (F.No. 226/126/99/ITA.II) whereby guidelines for selection of cases for assessment under section 143(3) of the Income tax Act, 1961, has been laid down by the Board.

2. It has now been decided that during the current financial year selection of cases for assessment under section 143(3) shall not be done in salary ward/circle/special range in Delhi, Mumbai, Calcutta and Chennai and instead efforts should be concentrated on disposal of all pending refunds and scrutiny of TDS returns filed by employer. This ban shall not apply in respect of assessment relating to :

i) Search & Seizure
ii) Survey under section 133A;
iii) Re-assessment under section 147;
iv) Set-aside assessment and cases where assessment under section 143(3) becomes mandatory in order to comply with direction of the Supreme Court / High Court / Special Court.
v) Such cases where CIT is of the opinion that assessment under section 143(3) is necessary, consequent to receipt of information from Central Vigilance Commission (CVC), Central Bureau of Investigation (CBI) or such other Central / State Vigilance Department.

3. It is also clarified that the provisions of Instruction No. 1967 are not applicable for selection of cases for assessment under section 143(3) in Central charges, where each return is to be picked up for assessment under section 143(3).

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

F. No. 225/126/99/ITA.II

(Kamlesh C. Varshney)
Under Secretary to Govt. of India