Jurisdiction of Commissioners of Income-tax (Appeals): specified high-value assessments and ancillary orders lie to Commissioner (Appeals) not AAC.
Where an AAC disposed of an appeal before the appointed transitional date, any action required after that date in relation to such disposed appeals - including rectification applications filed after the date or compliance with Tribunal remand directions issued after the date - is to be taken by the AAC under section 39(2) of the Finance Act, 1977; rectification matters initiated before the appointed day are governed by section 154 and may be amended by the same or another AAC. "Amount of income so assessed" refers to total income determined after set-offs; carry-forward items do not form part of the year's loss. Appeals against ancillary orders for assessment years within Board-notified classes lie to the Commissioner (Appeals), while pre-assessment orders not within subsection (2) remain appealable to the AAC.

Income tax rates continued while exemptions extended for welfare awards, Ladakh residents, and SC/ST upliftment bodies.
The Finance Act, 1980 maintains existing income tax rates and surcharge for 1980-81 and their application to advance tax, TDS on salaries and certain annuities, and accelerated assessments; continues aggregation of agricultural with non agricultural income for non corporate taxpayers with specified adjustments for unabsorbed agricultural losses; and amends section 10 to (a) exempt approved awards for alleviation of distress, (b) revive Ladakh resident income exemption for a further period, and (c) exempt incomes of government financed bodies promoting Scheduled Castes and Tribes, with retrospective effect from 1 4 1972.

Deduction of tax from interest on government securities to continue at prior withholding rates under the relevant income tax provisions.
Tax deduction from interest on government securities is to continue at the same withholding rates as previously in force; officials must issue directions to Treasury and Sub Treasury Officers to effect deduction at source using the rates set out in Part III of the First Schedule to the earlier Finance Act, consistent with the prior departmental circular.

Deduction of tax at source: continue applying prior year salary withholding rates under the Finance Act for the current year.
Deduction of tax at source from salaries is to continue at the same withholding rates; the Finance Act, 1980, prescribes the same rates as previously in force and employers/payors should apply the rates set out in Part III of the First Schedule to the Finance Act, 1979 when deducting tax under section 192.

Whole-time bona fide employment: director qualifies only if terms forbid other jobs and none is taken.
The Instruction limits qualification as a whole-time bona fide employee to cases where the employment terms forbid other employment and none is taken; it also rules that shares "actually belonging" to a director but registered in another's name count for rule 86 only where benami character is proved, admitted, or openly professed, and modifies Instruction No.1143 accordingly.

Recording of cheque receipt dates: bank inward receipt stamp suffices, chalan date columns need not be filled.
Recording of cheque/draft tender and realisation dates on the chalan counterfoil may be satisfied by the bank's affixation of an inward receipt stamp that records the date of tender and the date of realisation; where such stamped dates appear on the chalan counterfoil, filling the chalan's dedicated date columns need not be insisted upon.

Personal or household use exemption covers domestic appliances under wealth tax, irrespective of movability, excluding specified high value items.
Instruction 1329/CBDT interprets section 5(1)(viii) of the Wealth Tax Act to exempt articles intended for personal or household use; movability is not material. Consequently, domestic appliances and fixtures such as fans, refrigerators, air conditioners, geysers and desert coolers are within the exemption, while items expressly excluded by statute or instruction remain outside it.

Reference filing autonomy: commissioners may decide on tribunal references, with board approval required for high court approaches.
Instruction No.1328/CBDT authorises commissioners to decide independently whether to accept tribunal decisions or file reference applications without prior board approval, subject to exceptions: mandatory board reporting where reassessment or revision follows a revenue audit objection with an adverse tribunal finding, and prior board approval (with advance submission and standing counsel opinion) when seeking high court reference after tribunal rejection. The instruction preserves monetary thresholds for escalation, allows grouping of repetitive legal questions, and sets limits to deter low-value appeals and references.

Understated consideration presumption does not automatically permit property acquisition; acquisition requires a finding of tax-evasion intent.
A conclusive presumption arises when fair market value exceeds apparent consideration by the statutory margin that the consideration was not truly stated, but acquisition requires the competent authority to find that the understatement was made with an improper object such as facilitating tax reduction, evasion, or concealment; absent such a finding or where that link is rebutted, the authority cannot acquire the property.

Monetary limit for second appeals tightened to bar departmental appeals on low tax-effect entertainment and factual issues.
The Board refines monetary thresholds for filing departmental second appeals: appeals on questions of fact need not be filed where the tax effect or penalty reduction is at or below specified low thresholds for income-tax and other direct taxes; representative High Court references on points of law should continue but repetitive tribunal appeals on the same legal issue may be withheld where individual tax effect is nominal. Specifically, in relation to entertainment expenses, no second appeal should be filed where the tax effect does not exceed the revised lower limit, subject to High Court decisions already favourable to the department.

Accounting of direct tax receipts: clarifications mandate month-of-account stamps, central DCR entries and transfer accounting rules.
Procedural clarifications require a Month of Account stamp on each challan (a combined stamp with the main-scroll date is allowed), distribution memos must list individual challan amounts, and Central DCR/CRDR entries are to be maintained (bound volumes acceptable). March challans up to the last main scroll are accounted in the same financial year despite delays. Transfer challans are to be accounted by the Designated Officer for reporting but excluded from the CIT's net collection figures; proforma accounts, segregation of transfers (intra-/inter-zone) and specified forwarding procedures must be followed. Classification controls, use of memo abbreviations, staff deployment and transition rules are prescribed.

Alteration of printed year on share transfer forms permitted to correct printing errors when authenticity and genuineness ensured.
Alteration of the printed year on a share transfer form without countersignature may be regarded as good for delivery if the change is intended solely to rectify a printing error and the transaction is genuine; because there need be no nexus between the original registered holder and the final lodger, signatures may be separated in time but the alteration must be validated as corrective and bona fide before acceptance.

Chairmanship of regional advisory committees determined by seniority, with attached charge commissioner serving as co opted member.
Where a Regional Direct Taxes Advisory Committee serves multiple Commissioners' charges and meetings alternate at the respective headquarters, the Commissioner to whose charge the Committee is attached ordinarily acts as Chairman with the other Commissioner as co opted Member; however, if the other Commissioner is senior, that senior Commissioner shall be designated as Chairman and the attached Commissioner shall become the co opted Member, with the rule applying mutatis mutandis where more than two charges are served.

Investment allowance under section 32A applies to fishing vessels and trawlers, subject to prescribed eligibility conditions.
Fishing vessels and fishing trawlers are eligible for the investment allowance under section 32A, provided they fulfil the statutory conditions applicable to that allowance; this is administrative guidance issued after legal consultation confirming entitlement is conditional on those prescribed requirements.

Revisionary power under section 263 enables correction of ITO orders that are prejudicial to revenue and affect asset retention.
Revisionary power of the Commissioner under section 263 allows revision where an Income-tax Officer's order is erroneous and prejudicial to the interests of the revenue, meaning the lawful revenue due has not been realised. Orders under section 132(5) combine summary estimation of undisclosed income, tax and liabilities with retention and release of seized assets; failure to comply with these statutory components can render such orders prejudicial, thereby enabling the Commissioner to exercise revisionary jurisdiction. The statutory time limit applies to the initial order only and does not prevent subsequent orders to give effect to superior directions.

Charitable purpose definition clarified: profit-making activity to advance objects does not automatically negate charitable status.
The qualification "not involving the carrying on of activity for profit" in the definition of charitable purpose under section 2(15) applies to the object of general public utility and not to its advancement; trusts conducting profit-making activities to advance charitable objects therefore retain charitable status, while only objects that themselves involve carrying on activities for profit disqualify charity status. The board withdraws its prior instruction and permits completion of pending assessments in accordance with this interpretation.

Exemption under section 10(17B) affirmed for government rewards tied to VDIS, and departmental instruction is withdrawn and appeals conceded.
Reward payments to Central Government officers and staff for the success of the Voluntary Disclosure of Income Scheme are accepted as meeting the terms of section 10(17B) of the Income-tax Act, 1961; Instruction No.1189 dated 26.6.78 is cancelled and all appeals and reference applications on this point may be conceded or withdrawn.

Audit of acquisition proceedings must follow the established senior-level requisition procedure for file access and compliance.
Audit of files relating to acquisition proceedings must be conducted at a senior audit level and made available on requisition in the same manner as prescribed earlier for audits of records relating to specified disposal orders; the Board directed that the same procedure set out in the departmental letter of 24.10.1979 be applied and circulated to ensure uniform compliance.

Interest under Section 64(7) governs refunds after estate valuation reductions; administration prescribes a uniform rate.
Refunds payable after a High Court reduction in estate value give rise to interest under Section 64(7) of the Estate Duty Act; the section does not prescribe a rate. Administrative instruction states that, on consideration, it is reasonable to allow interest at a specified uniform rate for such refunds.

Audit of Summary Assessment Scheme ensures proper disposals, statutory adjustments, and Board review of systemic concessions abuse.
Audit of assessments completed under the Summary Assessment Scheme will verify proper disposal under the Scheme and whether required statutory adjustments were made; clear mistakes should be raised and reported with remedial action. If extraneous material suggests escaped income, reopening the assessment to address that income will satisfy Audit. Suspected systematic abuse of concessions by groups of assessees will be brought to the Board for consideration.