Mistake in totalling the income determined under different heads. - Income Tax - 355/CBDT

INSTRUCTION NO. 355/CBDT Dated: December 13, 1971 Section(s) Referred: 143(3) Statute: Income - Tax Act, 1961 Arithmetical mistakes occurring in the computation of total income are being repeatedly brought to the notice of the Board by the C. A.G.'s revenue audit parties. 2. Some typical mistakes are:- (i) the failure to include in the computation of total income certain proposed additions to income discussed in the narrative portion of the assessment order; (ii) mistake in totalling the income determined under different heads; (iii) adding disallowable items of debit so loss shown or determined instead of deducting these (iv) omitting the last digit (mostly a zero) of a number running into several digits; (v) errors in addition, particularly of digits in the fourth or fifth place of numerals 3. The Public Account Committee while considering the Audit Report for 1970 and 1971 an their last meeting held in October 1971, expressed grave concern over the recurrent of the types of avoidable mistakes listed above. The Board share their concern and feel that the mistakes may well be avoided with proper care in securing arithmetical accuracy with this end in view, they have taken the following decisions: (1) Before signing assessment orders, Income-tax Officers must satisfy themselves about the arithmetical accuracy of the total income determined by them. When the total Income exceeds Rs.9,999/-, they must write in words, as well as figures, the amount of Total income. Arithmetical mistakes in the computation of Total Income detected later in such cases will be treated as instances of gross negligence on their part. (2) The clerks concerned with the calculation of tax must ensure that they take the correct total income as determined by the Income-tax Officers. The Head Clerks/Supervisors, who are required to check such calculations, must also tally the total income taken for the purpose of calculating the tax with that shown in the relevant assessment order. If there is any error in transcribing the total income, the responsibility will be that of the concerned clerks, Head Clerks and Supervisors. 4. The Board desire you to intimate the above-mentioned decisions to your officers and members of the staff.