Section 143 l Assessment
Circular No. 201 was issued by the Central Board of Direct Taxes on 5 July 1976. Its subject is Section 143 l Assessment.
Publicises the summary assessment scheme and asks for taxpayers' cooperation with it. The Board records that it attaches great importance to the scheme so that genuine small taxpayers, nearly 70 per cent of those on the registers, are not put to the inconvenience of appearing before Income-tax Officers to prove the correctness of their returned income, and that it has fixed a target of 70 per cent of all assessments for the year to be completed summarily, only a small proportion being picked for scrutiny on an objective and rational basis. For the scheme to work, returns must be correct and complete in all respects, accompanied by the trading, profit and loss account, balance sheet and other statements required by the rules, and by evidence in support of rebates, reliefs and tax credits claimed. To meet fears about the safety of those papers, the Board says the procedure for receipt and registration of returns has been streamlined and documents filed with returns are to be properly docketed. The Department had also run a campaign of taxpayer education on the scheme, which was to continue.
The Board wanted the summary assessment scheme to succeed and needed taxpayers and their advisers to file complete returns with the supporting papers.
| Under the 1961 Act | Now |
|---|---|
| s.143 | s.270 |
SECTION 143 l ASSESSMENT
866. Summary assessment scheme - Steps for accelerating pace of assessment without appearing before Income-tax Officers
1. The Board attaches very great importance to the successful implementation of the "summary assessment scheme" so that the genuine small taxpayers, who form nearly 70 per cent of the number of taxpayers borne on our registers, are not put to the avoidable inconvenience of appearing before the Income-tax Officers to prove the correctness of the income returned by them. During the current year, the Board has fixed a target of 70 per cent of all assessments to be completed under the "summary assessment scheme" and only a small percentage of cases are selected on an objective and rational basis for scrutiny. The remaining cases will be completed summarily without calling the taxpayer to appear before the Income-tax Officer with his books of account, etc. With a view to bring home the advantages of this scheme to the taxpayer, a massive campaign of taxpayer education was recently undertaken by the Department explaining the various provisions of the tax laws with particular emphasis on the details and advantages of the "summary assessment scheme". This programme of taxpayer education will be a continuing process.
2. However, the success of this scheme depends, to a large extent, on the cooperation of the taxpayers and their advisers. In order to enable the Income-tax Officer to complete the assessment in a summary manner and in accordance with law, the returns of income should be correct and complete in all respects, and be accompanied by copies of trading, profits and loss accounts, balance-sheets, etc., that are required under the rules. It is also necessary that evidence in support of rebates, reliefs and tax credit, etc., claimed should accompany the returns. To remove any misgivings regarding the safety of these documents steps have been taken to streamline the procedure for receipt and registration of returns in the income-tax officers and to ensure that documents accompanying the returns are properly docketed.
3. The above steps taken to accelerate the pace of assessments in a summary manner in all suitable cases may be brought to the notice of the general public.
Circular : No. 201 [F. No. 237/16/76-A & PAC-II], dated 5-7-1976.
In old records explaining why a return of that period was completed without any hearing, and in a dispute over documents said to have been filed with a return.
Source: the Income Tax Department’s own published text — its page for this instrument.