AIRs-Utilization of information-CBDT

Last updated: 29 August 2007

Direct Tax Instruction No. 7 dated 16 August 2007
Annual Information Returns (AIRs) - Utilization of information

For the purpose of issuance of notices and taking statutory action under sub-para (d) of para 10 of Board's Instruction No. 6-2006 dated 1 August 2006 on utilization of information in the Annual Information Returns (AIRs) relating to financial year 2004-05 (assessment year 2005-06), the Board had empowered the Cadre Controlling CCsIT to appoint AOs, depending upon their workload. However, based the references received from the field formations that, looking at the workload, it might not be possible to assign this work to only a few designated Assessing Officers and it should be left to concerned CCIT/CIT to decide as to whom this work is assigned to, it was decided by the Board that instead of CCIT, concerned CIT may either designate separate Assessing Officer or Officers in accordance with para (d) or may decide to assign this work to concerned jurisdictional Assessing Officer.

Reference is invited to Board's Instruction No. 6/2006 dated 1st of August, 2006 on utilization of information in the Annual Information Returns (AIRs) relating to financial year 2004-05 (assessment year 2005-06).

2. Sub-para (d) of para 10 (page 4) of said instruction reads as under:-

"(d) For the purpose of issuance of these notices and taking statutory action thereupon, the Board has decided that the Cadre Controlling CCsiT should pass order conferring concurrent jurisdiction to one or more Assessing Officers (hereinafter referred to as the designated Assessing Officer), depending on the workload, at the stations where the assessees (to whom notices under section 142(1) are to be issued) are located."

References have been received from field formation that, looking to the workload, it may not be possible to assign this work to only a few designated Assessing Officers and it should be left to concerned CCIT/CIT to decide as to whom this work is assigned to. Accordingly, it has been decided by the Board that instead of CCIT, concerned CIT may either designate separate Assessing Officer or Officers in accordance with para (d) above or may decide to assign this work to concerned jurisdictional Assessing Officer. Sub-paras (d), (e), (f) and (g) of para 10 of said instruction shall stand modified accordingly.

3. References have also been received from field formation regarding issue of notice under section 142(1) in the cases mentioned in para 10 of the said instruction. As per item 7 of Annexure 'A' to Central Action Plan, 2007-08 such notices are to be issued before 31st August, 2007.

4. It has also been brought to notice of the Board that in some cases, the address of transacting parties given in AIRs is not complete. Sub-para (f) of para 10 of above-mentioned instruction outlines the procedure to be followed in case the assessee is not traceable. It may be because of incomplete address or change in address. All efforts should be made to trace the assessee in accordance with the procedure outlined in said sub-para. However, it should be ensured that there is valid service of notice. Further if, because of time taken in tracing the assessee, no time is available for issue of notice under section 142(1) and for making the assessment up to 31-12-2007, notice may be issued under section 148 after 31-12-2007.