Regarding irregular collections by the Income-tax Officers towards the end of a financial year which were refunded within a few days in the next financial year. - Income Tax - 593/CBDT

INSTRUCTION NO. 593/CBDT Dated : August 23, 1973 In para 55(d) of the Audit Report (Civil) on Revenue Receipts, 1967, there was an adverse comment regarding irregular collections by the Income-tax Officers towards the end of a financial year which were refunded within a few days in the next financial year. Such collections were being made without there being any outstanding demand. In Board's instructions issued in F.No.83/92/66-ITB, dated 9.12.67 it was stated that collections made in this manner should be discontinued forthwith and that any deviation would be seriously viewed. 2. It has come to the notice of the Board that in spite of these instructions, I.T.Os. continue to make unauthorised collections towards the end of a financial year, without there being a valid demand against the assessee. In para 35(ii) of the C. A.G's Audit Report, 1971-72, an instance has been pointed out of such irregular collection of a sum of Rs.1 lakh from two assessees on 31.3.71 which was refunded within three days i.e. on 2.4.1971. 3. The Board has viewed the recurrance of this practice of irregular collection with extreme displeasure. The Income-tax Officers working in your charge may be informed that such irregular collections will render them liable to disciplinary proceedings.