740/CBDT. - Income Tax - 740/CBDT

INSTRUCTION NO. 740/CBDT Dated : August 21, 1974 The Board has been reviewing the working of the Functional Scheme for some time now, and in the light of the experience gained so far the question of a partial or complete discontinuance and /or reversion to the old unitary system, has been considered at length. It has been felt that the Functional Scheme which had been given a very fair trial, has failed to deliver the goods. The malady which was sought to be cured by the Functional Scheme had not shown any sign of abatement but has worsened during the period the Functional Scheme has been in operation. The alternative before the Board was either totally discontinue the Functional Scheme and revert back to the unitary system previously in vogue, or modify the Functional Scheme by separating the two basic functions of assessment and collection alone and revert to a partial Functional Scheme. The second alternative was considered and found not desirable because of the difficulty in separating the functions of assessment and collection into two distinct water tight compartments, administratively and legally. The Board, therefore, have decided that the Functional Scheme should be given up and the Department should revert to the old unitary system of working. 2. The timing of this reversion has also been considered by the Board at length. As such reversion may cause some temporary administrative dislocation and it may affect the overall Action Plan now in operation, it has been decided that such reversion to unitary system should be phased up to 31st March, 1975. If in any Commissioner's charge such reversion can be expedited without disturbing the achievement of overall targets set, the Board would have no objection to an earlier reversion to the unitary system in these charges. It has, however, to be ensured that after the 31st March, 1975 all charges should uniformly revert to the unitary system.