836/CBDT. - Income Tax - 836/CBDT

INSTRUCTION NO. 836/CBDT Dated : May 28, 1975 It was come to the notice of the Board that there is no uniform practice for showing the adjustment of refund due to an assessee against the arrear demand due from him. While some Income-tax Officers show such adjustment as cash collection by issuing a refund voucher accompanied by a challan for an equal amount, others show the adjustment in the Assessment Form ITNS 150 and a refund voucher or a demand notice as the case may be, is issued to the assessee for the balance refund or demands, if any. 2. The Board desire that keeping in view the relevant accounting principles, all refunds adjusted wholly or partly towards arrear demand should be shown as cash collections and not as reductions by way of adjustment out of arrear demand. Accordingly, where the whole or any part of the refund due to an assessee is adjusted towards arrear demand outstanding against him, an adjustment refund voucher should be issued along with a challan for an equal amount. If any refunds is still due to the assessee, a separate refund voucher for that amount should also be issued to the assessee. 3. These instructions may be brought to the notice of all the officers working in your charge for strict compliance in future. 4. The receipt of this letter may please be acknowledged.