861/CBDT. - Income Tax - 861/CBDT

INSTRUCTION NO. 861/CBDT Dated : August 5, 1975 During the discussions held some time ago in New Delhi for the conclusion of a comprehensive Agreement between India and Bangladesh for the avoidance of double taxation of income, it was brought to the notice of the Bangladesh Tax Delegation that some of the Indian tax payers have not been able to obtain certificates of assessment, as contemplated in Article VI of the D.T.A. Agreement which was in force between India and Pakistan, in respect of their income assessed in the territories now comprised in Bangladesh. In the absence of these certificates, it has not been possible for the Indian tax authorities to give the necessary abatement and the demands held in abeyance continued to remain outstanding. 2. The Bangladesh Tax Delegation had indicated that the necessary certificates would be issued on request being made by the tax-payers to the concerned Commissioner of Income-tax in Bangladesh, i.e., Commissioner of Income-tax, Chittagong or Dacca. as the case may be. For the sake of facility the Board will also furnish lists of such cases to the National Board of Revenue, Government of Bangladesh. The Bangladesh Delegation also requested for similar action on reciprocal basis in respect of tax-payers in Bangladesh in whose cases demands were outstanding for want of certificates of assessment from the Indian tax authorities. 3. You are, therefore, requested:- (i) to inform the concerned assessees in your charge to approach the C.I.T., Chittagong or Dacca, as the case may be for issue of the requisite certificates; (ii) to furnish to the Board, by 15-9-1975, particulars in respect of assessees in whose cases demands have been held in abeyance till production of certificates of assessment in terms of Article VI(b) of the Agreement with Pakistan, in the proforma printed below [These particulars will then be sent by the Board to the Government of Bangladesh for necessary action. Proper care should be exercised to ensure that the information furnished is correct and complete in all respects]; and (iii) to ensure that when any request is received from a tax-payer of Bangladesh for the issue of a certificate of assessment by any Income-tax authority in your charge, it is complied with on priority basis. 4. In this connection, attention is also invited to Board's Circular No. 27(F.No. 501/2/72-FTD) dated 10-1-74 in which it was explained that the Agreement Avoidance of Double Taxation with Pakistan ceased to be operative for and from the assessment year 1972-73 in relation to Pakistan as well as Bangladesh. Certificates of assessment for the purposes of Article VI(b) of the Agreement will, therefore, be relevant only for the assessment years upto and including 1971-72. The from of such certificates of assessment is given on page 517 of Part III of the Income-tax Manual (10th Edition, 1950).