Certificate proceedings under section 222. - Income Tax - 487/CBDT

INSTRUCTION NO. 487/CBDT December 15, 1972 Section(s) Referred: 222 Statute: Income - Tax Act, 1961 Attention is invited to instructions contained in Para 12 of Chapter XIV(a) of the Office Manual Vol.II Section II wherein it is stated that in any case where certificate proceedings under section 222 have already been taken for the recovery of outstanding demand under section 210, the Income-tax Officer should continue these proceedings even after the regular assessment and direct the recovery of difference on the regular assessment. It has been noticed that these instructions are neither legally in order nor are followed in actual practice in many of the charges. The Board have been advised that the tax payable on a regular assessment is not different from that payable as advance tax, though in the latter case payment is made prior to the assessment which quantifies the tax liability. It is not consistent with the scheme of the Income-tax Act for two demand notices in respect of the same year to be in force. On regular assessment the demand notice has to show the total tax payable by an assessee. It may be that this would include a certain amount of advance tax which has fallen in arrears in respect of which the assessee is deemed to be an assessee in default but that does not affect the position that the demand is one. The Board have also been advised that the liability which the individual has incurred for non-payment of advance tax prior to the issue of notice of demand on completion of the assessment is not wiped out and the obligation to pay penalty or interest for the said period would remain. Wherever a part of the demand is in arrears of advance-tax, the same may be shown separately in the demand notice, but the certificate proceedings already taken may be withdrawn. 2. Para 2 of the Board's letter F.No.16/133/64-IT(B) dated 7th January, 1965, wherein the instruction in the Office Manual Vol. II Section II has been re-iterated, is hereby cancelled.