Development rebate withdrawal required when assets sold within eight years; officers must verify and initiate withdrawal promptly. Income-tax Officers must check balance sheets for sales of machinery and verify whether development rebate was previously allowed; if an asset was disposed of within eight years of acquisition, the officer must promptly initiate withdrawal of the rebate under the reassessment provision, and if the earlier claim is pending in appeal or revision, notify the appellate/revision authority or record a note that rebate should be withdrawn if the claim is admitted.
Exemption certificate renewal for charitable trusts requires auditor certification of non infringement of disqualifying provisions and periodic renewals. Amendments to sections 11 to 13 require that initial exemption certificates to trusts be valid for one assessment year, with renewal for the next three years after scrutiny of accounts; subsequent renewals are to be granted once every three years following record scrutiny and confirmation of compliance. Each renewal must be supported by an auditor's certificate stating that the trust has not infringed the disqualifying provision in section 13 up to the date of application.
Assessment safeguards: require specific factual foundations and procedural enquiry before making disallowances or invoking concealment penalties. Instruction identifies recurring defects in assessments - unsupported gross profit reductions, general expense disallowances, unsubstantiated directors' ... Summary
Assessment safeguards: require specific factual foundations and procedural enquiry before making disallowances or invoking concealment penalties.
Instruction identifies recurring defects in assessments - unsupported gross profit reductions, general expense disallowances, unsubstantiated directors' remuneration adjustments, cash-credit additions without proper enquiry, inadequate-drawings adjustments lacking factual support, and concealment-penalty imposition without adequate onus - and directs officers to follow prior circulars, maintain confidential registers and records, state specific facts and reasons for disallowances, observe procedural safeguards (including opportunity for cross-examination), and circulate favorable appellate precedents for guidance.
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