852/CBDT. - Income Tax - 852/CBDT

INSTRUCTION NO. 852/CBDT Dated : July 14, 1975 Section(s) Referred: 156 Statute: Income - Tax Act, 1961 Reference is invited to Board's Instructions contained in F.No. 236/222/70-IT(A) dated the 22nd March 1971 and the instructions issued by the Director of Inspection (IT A) vide letter No. M-6/1/72-DIT dated the 22nd September 1972. In these instructions the necessity of timely of timely issue and service of demand notices and challans was emphasised. It was pointed out that normally the demand notices and challans should be served within a fortnight of the completion of assessments and in cases of obstructive assessees the service should be made within a month. It was also pointed out that during the course of internal audit, the I.A.Ps. should be instructed to bring to the notice of the Commissioners of Income-tax all cases of inordinate delay in the issue and the service of demand notices and challans. 2. Recently some cases have come to the notice of the Board where it was found that there was delay of more than one year in the service of the demand notices and challans. Such lapses are commented upon very adversely by the Public Accounts Committee. 3. The existing procedure already provides a machinery for securing the objective of timely issue and service of demand notices and challans. The date of the assessment order and the date of service of the demand notice are required to be noted in Col. 4 27 of the Demand and Collection Register respectively. Entries made in these columns enable the supervisory authorities to pinpoint lapses in this respect. The Board feel that the Head Clerks and the Income-tax Officers are not scrutinizing the demand and collection registers periodically, particularly the entries in Col. 4 27. 4. The Board desire that the Income-tax Officers should personally scrutinize the D.C.Rs. at the close of every month to ascertain preceding month, service of demand notices has been made and entered in the D.C.R. The Range I.A.Cs should also keep a watch on this aspect of the I.T.Cs', work and scrutinise the D.C.Rs. once in every quarter in respect of local circles. In respect of mofussil charges, the verification of the D.C.Rs. should be made by the I.A.Cs. when they visit such charges on tour. 5. The procedure laid down in para 4 above should also be followed for ensuring timely issue and service of notices of demand in respect of advance tax in pursuance to orders u/s 210 as well as demands of other direct taxes.