800/CBDT. - Income Tax - 800/CBDT

INSTRUCTION NO. 800/CBDT Dated : November 25, 1974 Section(s) Referred: 41(1) Statute: Income - Tax Act, 1961 A case come to the notice of the Board where the ITO failed to charge the refund of Sales-tax received by the assessee from the Sales-tax Authorities under section 41(1) of the IT ACT, 1961, resulting in underassessment in that case. The Revenue audit found out the fact of the assessee having obtained the said refund on verifying the relevant sales-tax records and commented that such a mistake would not have occurred had there been proper co-ordination between the IT Department and the Sales Tax Department. 2. With a view to avoiding occurrence of such mistakes in future, it has been decided by the Board that proper liasion should be established with the Sales Tax Authorities so that various matters arising from proceedings under the Sales-tax Act including refunds issued by the Sales-tax Authorities which have a bearing on the Income-tax assessment are taken due note of by the IT Authorities in the relevant assessment proceedings. The liaison will be maintained by the special Investigation Branch in each Commissioner's office. It will pass on the information collected to the ITO concerned and keep a record of the resulting revenue gain. 3. The above instructions may kindly be brought to the notice of all officers working in each charge.