Ensuring timely issue and service of notice of demand and challans. - Income Tax - 974/CBDT

INSTRUCTION NO. 974/CBDT Dated : July 8, 1976 Section(s) Referred: 156 Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction No. 852* (F. NO. 236/423/72-A PAC. I) dated 14th July, 75 wherein the need for ensuring timely issue and service of notice of demand and challans was emphasised to ensure collection of demand within the financial year itself. It was pointed out that normally the demand notices and challans should be served within a fort night of the completion of assessment. Inspite of these clear instructions, instances have come to notice where the time lag between the date of the assessment order and the service of notice ranges from 1-3 months. 2. Such serious lapses have been viewed with concern by the Board. This reflects badly on the control exercised by the middle level officers. 3. With the replacement of functional scheme by the unitary system, the Income-tax Officers are required to write the Demand and Collection Register themselves as per Board Instruction No. 937* (F. No. 225/26/76-ITA.II) dated 18th March 1976. The Register for noting the dates of issue and service of demand notices are filled in. Periodical verification of the D C register and scrutiny of the Notice Server's register will enable the Income-tax Officer to exercise proper control over this important work. Inspecting Assistant Commissioners by means of test check should ensure that the Income-tax Officers exercise proper control over this work.