Proper processing of challans. - Income Tax - 220/CBDT

INSTRUCTION NO. 220/CBDT Dated: September 19, 1970 As you are no doubt aware proper accounting, posting and placement of tax challans play a crucial role in the working of the I.T.Department. It has been seen that this work is not being properly attended to in all cases and this results in adverse consequences in several directions. In the absence of challans in the file credit cannot be given for the tax already paid by the assessees by way of advance-tax or self-assessment tax. Considerable delays take place in the preparation of demand notices after the assessments have been finalised by the ITOs. Demands are pressed in a large number of cases even though there is no demand due from an assessee. Recovery certificates are wrongly issued either for excessive amounts or even where no demand is really due. Refund vouchers are also withheld because of the delay in verification of the tax already paid. In cases where demand notices are issued for excessive amounts, rectification applications are filed by assessees and this adds to our work-load. The demand shown as outstanding in our registers remains at inflated figures and this gives an adverse picture of the working of the Income-tax department. 2. All this leads to a lot of unnecessary additional work and a drain on our man-power resources apart from putting a severe strain on the public relations. It is therefore necessary to take steps to ensure that the challans are properly handled, accounted for, posted in the registers and placed in the relevant assessment records so that they are readily available to the ITO at the time of finalising the assessment and refund claims and in all subsequent proceedings whenever a reference to them becomes necessary. 3. It is seen that the procedures for processing the challans and posting them in the registers etc., have not so far been spelt out in detail and that in practice, uniform procedures are not being followed in various places. 4. The board desire that after a study of the procedures followed in your charge you may issue detailed instructions on this subject by adopting the enclosed model circular with such modification as may be considered necessary by you in the light of local conditions and in consultation with the Accountant General if necessary. 5. A copy of the instructions issued by you should be sent to the O P Division preferable within a month.