780/CBDT. - Income Tax - 780/CBDT

INSTRUCTION NO. 780/CBDT Dated : November 6, 1974 Section(s) Referred: 139(2) Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction No.700 dated 4th June, 1974 (printed below) by which Commissioners were requested to furnish information pertaining to the companies registered with the Reigstrar of Companies from 1.4.69 to 31.3.74 and the number of such companies brought on records of the IT Department. 2. From the information supplied by the Commissioners it transpires that a large number of companies registered with the Registrar of Companies have not been taken on the records of the IT Department. As many as 1,688 companies registered during the financial years 1969-70 to 1971-72 have not been assessed so far to Income-tax. 3. with a view to keeping an effective check on the companies newly registered having brought to tax, the Board has decided that notices under section 139(2) must invariably be issued to all the companies registered in any year in the following financial year. If after a few years it is found that the companies have either not started the business or that they are incurring loss, their names may be struck off from the records of the IT Department. 4. As far as the companies so far registered is concerned you will kindly take immediate steps to have a complete tally of the cases not assessed so far and direct the ITO to initiate proceedings in all liable cases before 1.1.75. A report indicating the cases in which assessment proceedings have been initiated in respect of companies registered in the years 1969-70 to 1973-74 along with the number of companies in respect of which proceedings have not been started and the reasons thereof may kindly be sent by 15th January, 1975.