Letter [F.NO. 187/12/2010-ITA-1], dated 5-9-2012 — Instructions regarding Income limits for assigning cases to Deputy Commissioners/Assistant

What this is

Letter [F.NO. 187/12/2010-ITA-1], dated 5-9-2012 was issued by the Central Board of Direct Taxes on 5 September 2012. Its subject is Instructions regarding Income limits for assigning cases to Deputy Commissioners/Assistant Commissioners/ITOs.

This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.

What it does

Asks all Chief Commissioners in charge of a cadre controlling region to send proposals for revising the income limits that decide whether a case is assessed by an Income-tax Officer or by an Assistant or Deputy Commissioner. The existing criteria rest on Instruction No. 1/2011 dated 31 January 2011 read with Instruction No. 6/2011 dated 8 April 2011 and a clarification dated 8 December 2011. Any proposal must be settled by consensus among the Chief Commissioners of the region and must not disturb assessment work, revenue collection or action plan targets, and had to reach the Board by 1.30 p.m. on 7 September 2012.

Why it was issued

The question of reconsidering the income limits for jurisdiction was raised at the meeting of Chief Commissioners and Directors General on 3 September 2012, a view being expressed that a revision would ensure equitable distribution of workload, and the Finance Minister desired that the field send recommendations without delay.

Who it reaches

Chief Commissioners preparing jurisdiction proposals
Income-tax Officers and Assistant or Deputy Commissioners whose case load turns on these limits
Assessees whose jurisdiction may shift with a revision

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

Instructions regarding Income limits for assigning cases to Deputy Commissioners/Assistant Commissioners/ITOs
LETTER [F.NO. 187/12/2010-ITA-1], DATED 5-9-2012
This is with reference to the deliberations made in the meeting of Chief Commissioners of Income Tax & Directors General of Income Tax held on 3-9-2012 at New Delhi. One of the issues raised in the meeting was re-consideration of income limits for assigning jurisdiction among ITOs & ACsIT/DCsIT. The present criteria for jurisdiction is based on CBDT Instruction No. 1/2011 dated 31-1-2011 read with Instruction No 6/2011 dated 8-4-2011 and subsequent clarification dated 8-12-2011. A view was expressed to suitably revise the same so that equitable distribution of workload could be ensured among the Assessment Officers. The hon'ble FM, during the deliberation had desired that the field authorities should send their recommendations to CBDT without delay so that the needful could be done.
2. I am, therefore, directed to request all CCsIT (CCA) to kindly send their proposals for revising the income limits with reference to their regions if considered necessary. While doing so, they are requested to ensure that-
(i) the matter is discussed with all the CCsIT in the region and a consensus is obtained.
(ii) the transfer of records or other administrative, consequences, as a result of said proposal, would not affect the assessment work, revenue collection or meeting other action plan targets.
3. The proposals may reach CBDT positively by 1.30P.M. on 7-9-2012. The same may be faxed at 011-23093070 and also emailed at surabhi.sharma@nic.in
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What to watch

This is an internal letter calling for proposals; it does not itself revise any income limit, so the limits in Instruction No. 1/2011 as clarified continued to apply.
It is a letter, not a circular of the Board, so it is not authority a taxpayer can rely on.
The deadline of 7 September 2012 has long passed and the letter is spent.
A jurisdictional objection has to be founded on the instructions it refers to, not on this letter.

Where you meet it

In tracing the history of a jurisdictional objection under section 124, where the income limit governing the rank of the Assessing Officer is in question.

← Order No. 9/FT&TR/2012 [F. No. 500/15/2011-FT&TR-1], dated 7-9-2012 · Press Release, dated 3-9-2012 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.