Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessment year 1996-97 - Board issued a circular notifying that department would not select returns for assessment year 1996-97 for detailed scrutiny, if total income declared was more than 30 per cent of total income declared for assessment year 1995-96 - Whether where conditions laid down in said circular were fulfilled by assessee, Tribunal was right in holding that income-tax authorities could not have selected instant case for detailed scrutiny - Held, yes Circulars and notifications - CBDT Instruction No. 1935, dated 12-3-1996 FACTS The respondent-assessee was engaged in the business of construction. She constructed a complex during the assessment years 1993-94 to 1996-97. On completion of project in the assessment year 1996-97, the assessee, after taking into consideration the profits offered in the assessment years 1993-94 and 1994-95, offered the balance profit for taxation in the assessment year 1996-97. The Assessing Officer rejected the books of account maintained by the assessee and referred the matter to the departmental valuation cell. The valuation cell determined the value of the property at a much higher amount as against the declared value. The Assessing Officer, after making adjustments to the valuation report, completed assessment under section 143(3) by making addition. Appeal against the said order was rejected by the appellate authority. On further appeal, the assessee contended that since the department had decided by virtue of the Board circular not to make detailed scrutinies for the assessment year 1996-97 if the income declared was more than 30 per cent of the income declared in 1995-96, the assessment itself was bad. The Tribunal accepted the contention and allowed the appeal. In the instant appeal, the appellant submitted that the instructions in the circular were not binding on the Tribunal or the Court nor were available for execution to any judicial authority. HELD The conditions laid down in the circular were fulfilled by the respondent and there was no dispute on that. As regards the status of the circular, it had admittedly been issued by the CBDT…

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