Credit of tax on the basis of challans not traceable. - Income Tax - 523/CBDT

INSTRUCTION NO. 523/CBDT Dated : March 12, 1973 Para 19 of the above referred minutes reads as under:- " Finance Secretary also referred to the question of adjustment not having been made in the arrears, even though the amounts had been paid, because the challans had not been connected. The procedure and the difficulties were explained. F.S. felt that if Income-tax Officers could deal with the matters systematically the position should improve." 2. There are two main reasons for not giving credit for the tax paid by the assessees: (i) the non-placement of the available challans on the files, and (ii) the untraceability of challans. As a result the arrear demand remains artificially inflated and undue hardship is caused to the assessees. 3. In Board's Circular letter F.No.3/27/68-IT(B) dated 31st March, 1969, instructions were issued to the effect that where the challans are not traceable, the assessee should be requested to give a duly certified true copy of the challan on the basis of which the payment may be verified from the Daily Collection Register. These instructions covered payments made prior to 1.4.1967. The matter was again examined in consultation with the Comptroller and Auditor General of India and this procedure was extended to the payments made upto 31.3.1969 vide Board's Circular letter No.3/27/68-ITB dated 9th June, 1970 (Instruction No.178). The question of extending this date further is being examined by the Board in consultation with the C. A.G. 4. In regard to the problem of non-placement of challans in the appropriate folders, the Board desire that the procedure laid down in the model Circular letter dated 20.9.1970. (Instruction No.220) may be followed as far as possible. It is also desired that greater admilnistrative control should be exercised by the Supervisory staff to ensure that challans be placed in the proper files. 5. These instructions may be brought to the notice of all the Officers and members of the staff in your charge.