Adjustment of advance tax under the head taxes on Income other than Corporation Tax. - Income Tax - 208/CBDT

INSTRUCTION NO 208/CBDT, Dated: August 20, 1970 Please refer to Board's letter of even number dated the 27th April,1970(Instruction No.165/70-ITB) under which you were requested to ensure that no demands under the head "IV Taxes on Income other than Corporation Tax" are shown as awaiting adjustment of advance tax and if any amount have been wrongly shown as such, the Accountants General concerned may be requested to carry out the transfer entries to the proper revenue heads. On a security of the quarterly demand, collection and balance statement for the quarter ending 31st March, 1970 it has been observed by the Board that the demand covered by advance tax which stood at Rs.69.19 crores as on 31-12-1969 has gone up to Rs.91.48 crores as on 31-3-1970. This would indicate that the problem has further aggravated. 2. The Board have recently under their letter F.No.14/21/69-ITB dated 20th August, 1970 (Instruction No.209) abolished w.e.f. 1-4-70 the system of adjustment of advance tax under the head "ITI - Corporation Tax" also with the result that after 1-4-70 there should be no demand awaiting adjustment of advance tax. All the Commissioners of Income-tax/Additional Commissioners of Income-tax(Recovery) are requested to kindly take action on the lines suggested in Board's letters of even number dated 27th April, 1970 and letter No.14/21/69-ITB dated the 20th August, 1970 (Instruction No.209) urgently so that the demands which have been wrongly shown as pending adjustment of advance tax are wiped out before submission of the next quarterly statement.