730/CBDT. - Income Tax - 730/CBDT

INSTRUCTION NO. 730/CBDT Dated : August 6, 1974 Section(s) Referred: 154 ,143(1) ,143(3) Statute: Income - Tax Act, 1961 Reference is invited to the Board's letter of even number dated the 29th September, 1972 and to say that after consideration the replies received from the Commissioners and in further consultation with the Ministry of Law (copy printed below), the following procedure is suggested for being followed for giving credit for tax deducted at source in respect of dividend warrants which are not considered at the time of original assessment. (a) Where an assessee had in fact filed dividend warrants before the completion of the assessment u/s 143(1)/(3) of IT Act, 1961 but these had not been taken into account in the assessment, Section 154 of the IT Act, 1961 would be applicable and necessary rectification may be made according to the aforesaid section taking into account the dividend warrants which were lost sight of earlier. b) Where, however, dividend warrants were not filed before completion of assessment, but only subsequently, section 154 would not apply as the dividend warrants will constitute new evidence which was not originally available and did not form part of the records. In such cases the under mentioned steps are indicated: i) If the relevant assessment was completed u/s.143(1) and the amount of tax deducted at source was shown in the return, although the relevant dividend warrants were not filed with the return, the assessee can apply us.143(2)(a) within the prescribed time limit of one month objecting to the assessment on the ground that no notice was taken in the assessment about the tax deducted at source shown in the return. It may also be added that against assessments u/s.143(1) no appeal has been prescribed but revision petitions can be filed before the Commissioner who can entertain a revision petition even beyond the prescribed time limit if there is sufficient cause for delay. ii) In cases completed u/s.143(3), the assessees may take recourse to appeal/revision petition for getting subsequently available dividend warrants considered. 2. Where necessary, the Commissioners may refer to the Board, cases of genuine hardship, for condonation u/s.119(2)(b) of the delay in the filing of aforesaid claims by the assessee where such condonation is within the purview of the said section. 3. The above-noted instructions may please be brought to the notice of the officers in the charge. Attention is also invited to Board's Instruction No.588 F.225/34/71-It.AII dated 18-6-73 regarding the role of refund applications u/s.237 in such cases and Board's circular letter No.F.5/82/68-IT.AII dated 19-11-68 prescribing procedure to be followed regarding L.I.P receipts not considered in assessments.