717/CBDT. - Income Tax - 717/CBDT

INSTRUCTION NO. 717/CBDT Dated : July 12, 1974 Section(s) Referred: 222 Statute: Income - Tax Act, 1961 Some CITs have brought to the notice of the Board that there is a large number of cases involving arrears of more than Rs.500 which are pending for write off because neither the assessment records nor the addresses of the assessees are available. In the absence of addresses, no enquiries about the assessees can be made. The question as to how the arrears in these cases are to be treated is under consideration of the Board. 2. However, to avoid recurrence of such a problem in future, the Board desire that full addresses and Permanent Account Numbers of the assessees should invariably be recorded in the Demand Collection Register while entering the original demand or carrying forward the arrear demand. In order to verify that these instructions are being followed, a test check of the entries made in the Demand Collection Register in relation to both current and arrear demand should be carried out. The test check must be made at least once in a year and, where necessary more than once. The proportion of entries checked may vary from 5 to 20 per cent depending upon the number of entries and their revenue importance. For carrying out the test check, it is requested to nominate senior and responsible officers. 3. In cases where omission of addresses and/or PAN is detected in the test check, a broader check should be made and the deficiencies made good. The officers making the test check should furnish a certificate to you after doing the needful. After you have received these certificates, you may kindly send a report to the Board in the enclosed proforma. 4. For future years, the report may be sent by 31st December, but this being the first year, special attention will have to be given to the checking of entries relating to arrear demand and the report sent to the Board by 30th September, 1974.