Circular - exemption benefit

[gurmukh kotwani]

Can someone provide number and date of an old income tax circular permitting assessing officer to give benefit of exemptions and deduections to assesse not claimed by him in return but to which he is otherwise entitled.

[DEV KUMAR KOTHARI]

CIRCULAR nO. 14 (xl-35) DT. 11.04.1955. BUT RAIRELY PRACTICED AND FOLLOWED BY A.O. NOW IN VIEW OF SC DECISION IN CASE OF GOIETZ INDIA, THE ASSESSEE HAS TO BE CAREFUL TO MAKE ALL CLAIMS IN RETURN OR REVISED RETURN. ANY CLAIM BY LETTER SHALL NOT BE PERMITTED BY AO.

AI Summary

Supreme Court Decision Reinforces Need for Taxpayers to Claim Exemptions in Initial Returns, Not via Letters. An individual inquired about an old income tax circular allowing assessing officers to grant exemption benefits not claimed in a tax return. A respondent cited Circular No. 14 (XL-35) dated April 11, 1955, noting that it is rarely practiced by assessing officers. They highlighted a Supreme Court decision in the Goetz India case, emphasizing that taxpayers must make all claims in their initial or revised returns, as claims made through letters will not be accepted by the assessing officer.