Revision of wealth and gift tax assessments requires prior Inspecting Assistant Commissioner approval where revisions exceed the prescribed threshold.
Wealth-tax and Gift-tax Officers must obtain prior approval from the Inspecting Assistant Commissioner before passing revision orders where a revision pursuant to appellate orders produces a reduction or enhancement of wealth-tax or gift-tax exceeding Rs.25,000; this procedural requirement applies to revision orders following appellate decisions and serves as supervisory control over significant tax adjustments.

Income from other sources: state legislature remuneration taxed as such, standard monthly deduction allowed and no tax deducted at source.
Remuneration paid to Members of State Legislatures is assessable as income from other sources and is not subject to tax deduction at source. A standard deduction is to be allowed from the monthly allowance - the lesser of a prescribed fixed monthly amount or a prescribed fraction of the monthly allowance - permitted without enquiry where claimed; higher claims require a broad check of actual expenditure. These instructions apply to pending assessments and do not require reopening completed assessments.

Registration continuation requirement: allow liberal condonation where Form 12 was filed late with returns to prevent hardship.
The amendment requires firms to furnish the Form 12 declaration within the time allowed for filing returns, which could disqualify continuation of registration if declarations were filed with returns after the amendment's effective date. The proviso permits Income-tax Officers to allow late filing where prevented by sufficient cause; the Board directs liberal exercise of that discretion for earlier assessment years to prevent hardship and condone delay where declarations were filed with returns after the effective date.

Time-bound completion of reopened tax assessments required; commissioners must finalise pending set-aside cases and enforce two-year limitation.
Commissioners must draw up and enforce a time-bound programme to finalise all pending assessments reopened under section 146 or set aside under sections 146, 251, 254 and 263 for assessment year 1970-71 and earlier by 30.7.1973, require reasons for non-finalisation after that date, and take serious view of officer inaction except for unavoidable circumstances; the two-year statutory limitation in section 153(2A) applies from assessment year 1971-72 onwards.

Spousal attribution of losses: losses of wife or minor child treated as individual's loss permitting set-off and carry forward.
Losses incurred by a wife or minor child from sources whose income would be includible in an individual's income may be set off against that individual's income and, if not fully absorbed, carried forward under the loss provisions; a spouse's share loss may be allowed in the spouse's assessment and any balance carried forward. The Board withdraws the earlier narrower view and treats such losses, as an alternative equitable construction, as if sustained by the individual.

Dividends declared after the statutory period must be included when computing super tax liability under the assessment order framework.
Dividends declared after the statutory twelve month period but before the date of passing a statutory assessment order must be included when computing additional super tax; the earlier board instruction excluding such dividends is withdrawn and the same rule applies to the comparable statutory assessment provision.

Refunds after appeal must be issued promptly; appellate orders to be given effect within a fortnight of receipt.
Refunds arising from appellate or revision orders must be granted and appellate orders given effect within a fortnight of the Income-tax Officer's receipt of the relevant order; the instruction reiterates earlier circulars and directs communication to all concerned.

Tax treatment of free medical treatment: reimbursements and in-kind care for state legislators treated as non-taxable like for MPs
The Board directs that reimbursement of medical expenses and the money value of free medical treatment provided to Members of the State Legislatures shall not be treated as taxable income, on the basis that similar facilities for Members of Parliament and Government servants are not assessed; assessing officers are to be instructed accordingly.

Industrial company definition: classification hinges on primary engagement or a year when a majority of income arises from listed industrial activities.
The Explanation to section 2(7)(d) treats a company as an industrial company based on listed industrial activities-power generation or distribution, ship construction, manufacture or processing of goods, and mining-and by whether income from those activities constitutes a specified majority of total income; the Board clarified that classification operates either from a company's primary engagement in those activities or from a year in which a majority of its income is derived from them.

Failure to report partnership income triggers penalty liability and requires officers to review prior assessments before completion.
Failure to disclose a partner's share of firm income in the partner's return attracts penal liability under section 271(1)(c). Assessing officers should consult prior years' assessment records and orders to detect recurring share income and avoid omissions; where such non disclosure is noticed, penalty proceedings under section 271(1)(c) should be initiated.

Audit reporting procedure: Commissioners to use revised form and file detailed reports only for final audit report items within deadline.
Commissioners shall use a revised reporting form to respond to draft audit paragraphs; a separate detailed report is required only for matters appearing in the final Audit Report, to be submitted to the designated Board division within one month of receipt, with "not applicable" entered where items do not apply and all other items duly addressed.

Exemption of interest on tax-free savings certificates for spouse/minor holdings continues; joint-holding exemption survives death.
Interest on specified tax-free small savings certificates and accounts held in the names of an assessee's wife or minor children is exempt up to the maximum amount permitted for each person under the issue rules; joint holdings are exempt up to the joint limit and, on the death of one joint holder, the surviving joint holder continues to receive exemption up to the joint holding limit. Authorities are directed to grant relief where exemption was improperly restricted and to waive time limits where necessary.

Time exclusion for obtaining certified copies permits exclusion of delay in applying for High Court certified copy after leave refusal.
Calculation of the period of limitation for filing a Special Leave Petition excludes time taken to obtain a High Court certified copy if the application for that certified copy is made after refusal of leave to appeal, because a certified copy is not essential to file the SLP under the Supreme Court rules; Standing Counsels should apply afresh for the certified copy after refusal even where one was obtained earlier.

Tax credit certificate submission: appeals must include original certificate and be prioritised for prompt disposal.
Appeals under paragraph 5 of the Tax Credit Certificate (Corporation Tax) Scheme must be filed with the order appealed against and, where a certificate was granted, the original tax credit certificate, which the Commissioner will retain until disposal; the Board requires these company appeals to be given priority and disposed of preferably within one month, and pending appeals to be completed within one month of this instruction.

Control of company affairs: a reduced number of directors alone does not establish public non interest under the relevant test.
Administrative guidance directs that a public company with fewer than six directors is not to be deemed one in which the public are not substantially interested solely by reason of that fact. The applicable explanatory test focuses on control of the affairs of a company, a qualitative inquiry distinct from day to day management, and tax officers must assess how control is exercised rather than rely on the board's numeric strength.

Application of income for charitable purposes: repayment of trust debts and student loans may qualify if not a money lending business.
Repayment of a loan originally taken to fulfil a trust object constitutes application of income for charitable purposes. Loans by an educational trust are application of income only when they form part of the trust's educational object; if the sole object is granting interest-bearing loans, that amounts to a money-lending business. Repayments received are treated as income in the year of receipt.

TDS on prize winnings and contractor payments requires new accounting subheads and updates to tax forms.
Two new withholding provisions require tax deduction at source from prize winnings and from payments to contractors and subcontractors. The instruction establishes specific minor heads and sub heads under Corporation Tax and Income tax to record surcharge items and the deductions under these provisions, and directs amendments to challan, budget estimate and monthly collection reporting forms to reflect the new accounting heads.

Stay of demand petitions must be decided promptly and with reasons to inform taxpayers of outcomes.
Petitions seeking a stay of collection of demand must be decided promptly and with due care by Income-tax Officers; officers should not leave petitions undecided or reject them summarily, and, wherever possible, reasons for rejection should be recorded and communicated to the assessee.

Audit objection settlement upon rectificatory action and demand-raising, with internal audit oversight and retained review rights.
Audit objections are to be treated as settled once appropriate rectificatory or revisionary action is taken and an additional demand is raised, notwithstanding delayed or outstanding recovery. This settlement is conditional on following the Accounts Committee's guidance on Commissioners' instructions, Internal Audit's responsibility to monitor recoveries and report specifically on audit-related recoveries/refunds, and the preservation of the Auditor-General's ability to raise draft paras where further scrutiny is warranted.

Director liability for unpaid corporate tax can be invoked to recover arrears when company assets are insufficient.
Where a private limited company in liquidation leaves tax arrears that cannot be recovered from the company, directors are jointly and severally liable for payment; tax authorities are instructed to invoke that statutory liability more vigorously to secure recovery from directors where company assets are insufficient.