818/CBDT. - Income Tax - 818/CBDT

INSTRUCTION NO. 818/CBDT Dated : December 24, 1974 The Board have received a large number of representations from members of the public, trade and profession associations, etc. pointing out that, in the absence of necessary instructions, many deposit offices have declined to accept compulsory deposits from the depositors under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974. In the result, a large number of persons in whose case the compulsory deposit for the assessment year 1975-76 was due by the 15th December, 1974, namely, the last date for payment of advance tax by them, have not been able to make the deposit by the said date. The failure to make compulsory deposits by the due date, in these circumstances, cannot be attributed to any default on the part of the depositors. Although necessary instructions in the matter were issued by the Reserve Bank of India some time ago, it is not unlikely that it may take some more time before all the deposit offices are in a position to accept deposits under the Scheme. The Board have accordingly decided that penal action for failure to make compulsory deposit should not be initiated under section 10 of the Compulsory deposit Scheme (Income-tax Payers) Act, 1974 in such cases if the deposit is made by them by the 31st January, 1975. 2. The Board desire that necessary instructions in this behalf should be issued to the ITOs immediately.