Dealing with the assessments of contractors. - Income Tax - 176/CBDT

INSTRUCTION NO 176/CBDT, Dated: May 28, 1970 Section(s) Referred: 285A Statute: Income - Tax Act, 1961 Attention is invited to Board's letter of even number dated 27-11-69 to all the Commissioners on the above subject. 2. From the reports received from the Commissioners. it is seen that the provisions of section 285A are largely being observed in their breach. In order to check evasion of tax by the Contractors, the Board desire that the ITO's when dealing with the assessments of contractors should see whether they had sent intimation u/s. 285A in the prescribed form. In case of default, they should inform the Commissioners so that action u/s. 285A(2) may be taken, wherever necessary. The Board further desire that our investigating agencies should also, as far as practicable, ascertain from important Government Departments the contracts entered into by them each month. 3. Board will also like to watch the progress of penalties imposed by the Commissioners u/s. 285A. It has, therefore, been decided that a report in this respect may be sent quarterly. The report for the first quarter ending 30-6-1970 may please be sent by the 7th July, 1970 and for the subsequent quarters by the 7th of the month following the relevant quarter.