765/CBDT. - Income Tax - 765/CBDT

Instruction No: 765/CBDT Date of Issue: 27/9/1974 Section(s) Referred: 243 Statute: Income - Tax Act, 1961 The P.A.C. in their 87th Report (1972-73) para 10.4 relating to para 45(a) of the Comptroller Auditor General's Report, 1970-71 made the following recommendation. "The refunds made u/s 243 of the Act during the year 1970-71 were the higher ever, the number and amount being 1,19,707 and Rs. 17.08 crores respectively. As against this, a sum of Rs. 4.05 crores was refunded in 76,912 cases during the year 1969-70. Thus, with only 54 per cent increase in the number of cases, the amount refunded recorded an increase of 324 per cent. Although the Committee wanted to know the particulars of cases involving refund of Rs. 1 lakh and above, the Ministry are not in a position to readily furnish them. The Committee are inclined to feel that the unprecedented increase in the amount of refund reflects on the accuracy of the assessments made by the Department. Anyhow, there is a need for examining the reasons for the increase. The result of the examination may be reported to the Committee." 2. From replies received in the Directorate (Research, Statistics Publication), in response to their query, it was reported by the Commissioners that this unprecedented increase in the amount in the year 1970-71 was not due to any inaccuracies in the assessment made but due to other reasons. Some commissioners, while furnishing the information for 1970-71 had included all cases resulting in refund due to taxes deducted at source, excess payment of advance tax and self assessment tax etc, while the information required (and furnished in the year 1969-70 by them) was only in respect of pure refund cases u/s 237. This change in the manner of reporting has caused needless embarrassment and additional work. 3. It may please be ensured that statistical information, on any point, that may be submitted by you to the Board or to the Directorate, is got reconciled with any information of a comparable character that may have been submitted on an earlier occasion and a certificate to this effect endorsed on the information that is under submission.