755/CBDT. - Income Tax - 755/CBDT

INSTRUCTION NO. 755/CBDT Dated : September 5, 1974 Section(s) Referred: 141A Statute: Income - Tax Act, 1961 Reference is invited to Board's Circular letter F. No. 12/91/65-IT(B) dated the 16th April, 1966, Para 89 of Circular No. 6P (LXXVI-66) of 1968 issued from F. No. 1(234)/68-TPL on the 6th July, 1968, Instruction No. 277 issued from F. No. 236/243/70-IT(Audit) on 17th March, 1971, Para 10 of Circular No. 56 issued from F. No. 156(27)7/-TPL on 19th March, 1971 and Instruction No. 438 issued from F. No. 246/48/71-A PAC on 14th July, 1972. 2. Instances have come to the notice of the Board that inspite of the above instructions regular assessments are unduly delayed and provisional assessments u/s 141-A of I.T. Act, 1961 are not being made in appropriate cases resulting in payment of avoidable interest u/s 214 amounting to several lakhs. The Board desire that provisional assessments u/s 141-A of I.T. Act should be invariably made promptly in all appropriate cases, where regular assessments are likely to be delayed so that unnecessary payment of interest u/s 214 is avoided. 3.With a view to ensure strict compliance with the above instruction, it is suggested that in all category I cases the returns should be scrutinised immediately on receipt with a view to see whether action u/s 141-A is attracted. All cases where the provisions of section 141-A are attracted should be entered in a separate register to be kept in the personal custody of the ITO. The ITO should give priority to the completion of these cases and whenever, it is found that the regular assessment in such cases cannot be completed within a period of six months from the date of filing the return provisional assessment u/s 141-A should be made forthwith and any refund due granted immediately. They should also leave a note in the file giving the reasons as to why regular assessment could not be completed with in 6 months. 4. Hereafter any payment of avoidable interest u/s 214 will be seriously viewed Cs. I.T. and IACs may call for half-yearly statements of interest paid by the Government exceeding Rs. 1,000 in each case to satisfy themselves that the payment of such interest was unavoidable.