In the case of public limited companies, incorporation certificate and certificate to prove that this is a public limited company are required to be enclosed alongwith the application for issue of Clearance Certificate - Income Tax - 887/CBDT

INSTRUCTION NO. 887/CBDT Dated : September 30, 1975 Section(s) Referred: 230 Statute: Income - Tax Act, 1961 Reference is invited to the instructions contained in Office Manual Volume-II, Section-II Part 7(b) appearing on page 274 of publication dated 26th June, 1967 under which in the case of public limited companies, incorporation certificate and certificate to prove that this is a public limited company are required to be enclosed alongwith the application for issue of Clearance Certificate. However, certificate to be incorporated by the Income-tax Officer requires the satisfaction that there is no information before him that the persons having substantial interest in the applicant company are deliberately not filing their returns of income, of not paying their tax demands or not cooperating in facilitating completion of the pending assessments. 2. It has been brought to the notice of the Board that some Income-tax Officers are insisting on production of "No objection Certificate" by the directors and substantial shareholders of the public limited company also for enabling them to record this satisfaction before issue of clearance certificate. 3. Considering the difficulties that are likely to be experienced by the public limited companies, in view of the fact that the shareholders are spread over through out the country, it has been decided that the condition of producing the "No Objection Certificate" in respect of directors and substantial shareholders of public limited companies may be dispensed with. 4. Necessary instructions may please be issued to all the Income-tax Officers working in your charge for their information and guidance.