Arithmetical mistakes in computation of income. - Income Tax - 489/CBDT

INSTRUCTION NO. 489/CBDT December 21, 1972 Attention is invited to Boards Instruction No.355 issued from F.No.240/3/71-A PAC dated 13th December,1971 regarding the arithmetical mistakes occurring in the computation of income which are brought to the notice of the Board by the C AG's Revenue Audit Parties and Board's concern expressed over the recurrence of the types of avoidable mistakes listed in para 2 of the above instruction. In Instruction No.355 it was directed, in respect of cases involving income-tax assessments, that:- i)before signing assessment orders, ITOs 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, and ii) the clerks concerned with the calculation of tax must ensure that they take the correct total income as determined by the ITOs. 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. 2. Similar arithmetical mistakes have been noticed in the wealth-tax assessments also. It has therefore, been decided by the Board that where the total wealth/taxable gifts exceeds Rs.5,00,000 or the principal value of Estate exceeds Rs.2 lakhs the Wealth Tax Officer/Gift Tax Officer/Assistant Controller must write in words as well as figures, the amount of total wealth/taxable gift/Principal value of the Estate. Board's decision contained in para 3(2) in Instruction NO.355 dated 13-12-1971 shall apply in respect of W.T, G.T Estate Duty cases also MUTATIS MUTANDIS. 3.The Board desire that these instructions may kindly be brought to the notice of all the officers and members of the staff immediately.