Instruction Instruction 96/1969 — AO must consider assessee’s explanation before rejection

Date: 1969-01-01 Status: ACTIVE Category: CBDT Instructions Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)

Summary

AOs must properly consider assessee’s explanation. Failure to consider vitiates the assessment order.

Key Directions

  1. AO must consider every explanation offered.
  2. If rejected, specific reasons must be recorded.
  3. Failure to consider explanation vitiates assessment order.

Applicability Under IT Act 2025

Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.

Old Section (1961 Act)New Section (2025 Act)Consistent?
GeneralNeeds Review

Cross-References

Act Sections

  • General application
  • None identified

Key Case Law (Circular Supremacy)

  • To be populated — cases where this circular was cited/applied

Full Text

Full text to be added — see raw/circulars/ for PDF when available

Source