Law: Income Tax Act, 1961

Section: 144A,144B

(a) Income-tax----Assessment---Draft assessment order ---I.A.C.---ITO issuing draft assessment order---Subsequent direction by I.A.C. under 5.144-A---Second Draft assessment order pursuant to such direction was valid--.Indian Income Tax Act, 1961, Ss. 144-A & 144-B. Merely because the Income-tax Officer has issued a draft assessment order, it would not mean that the Inspecting Assistant Commissioner cannot proceed under section 144-A of the Income Tax Act, 1961. When directions are given by the Inspecting Assistant Commissioner under section 144-A sometimes the Income-tax Officer will have to make further investigation as per the directions, as a result of which, the Income-tax Officer may come across information which he did not have with him, when he originally issued a draft assessment order under section 144-B. It is not in all cases that the Income-tax Officer can immediately pass an assessment order as pre directions issued by the IAC under section 144-A. In cases where the Income-tax Officer comes across fresh materials, as a result of such investigation and the variation exceeds the amount fixed by the Board, it is open to the Income-tax Officer to issue a fresh draft assessment order and call for the objection of the assessee. Such action will be in the interest of the assessee and it will be in furtherance of the object of the provisions contained under sections 144-A and 144-B. Under section 144-A the Inspecting Assistant Commissioner is empowered to issue directions to the Income-tax Officer either suo motu or on a reference from the Income-tax Officer o on the application of the assessee. He can call for and examine the entire assessment record of any proceeding in which an assessment is pending and issue necessary directions to the Income-tax Officer. If such directions are against the ~interest of the assessee, he has to be given an opportunity of being heard. But when the Income-tax Officer takes action under section 144-B and forwards the draft assessment order to the Inspecting Assistant Commissioner, the power of the Inspecting Assistant Commissioner is limited to the proposed additions in the draft assessment order. He cannot travel…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492