Instruction no.123 modified. - Income Tax - 1061/CBDT

INSTRUCTION NO. 1061/CBDT Dated : May 25, 1977 INSTRUCTION NO.123 MODIFIED * Reference is invited to Board's Instruction No.937 (F.No.225/26/76-IT.AII) dated 18.3.76 wherein it was reiterated that after the withdrawal of the Functional Scheme of work, the Income-tax Officers should, themselves, make entries in the Demand and Collection Registers. 2. A question has been raised as to whether the Income-tax Officers should personally make entries of demand raised during the year only or whether they should also personally carry forward, to the Demand and Collection Registers of the next year, the demand that remains outstanding at the end of a financial year. 3. After a detailed examination of the question, the Board have decided that while the entries of all the columns in the Demand portion of the Demand and Collection Register of the current year should be made personally by the Income tax Officers working in Company/Central /Scrutiny and pre-dominantly Scrutiny Wards/Districts may get the entries in the columns, other than the columns showing particulars of demand raised, filled up by the UDC concerned. The entries showing particulars of the current demands should, however, be made invariably by the Income-tax Officers personally and they should ensure that the names of the assessees and other particulars have been correctly written by the UDCs. 4. As regards the work of carrying forward the arrear demand, it should be done by Inspectors/Head Clerks/Supervisors, depending upon the availability of the officials concerned, in Companies, Central, Scrutiny and pre-dominantly Scrutiny Wards Districts. In Salary Circles, Summary and pre-dominantly Summary Wards/Districts, this work will be done by the UDCs. The official carrying forward the arrear demand should append a certificate on the first page of the Demand and Collection Register certifying that all the entries of arrear demand have been duly carried over by him from the Demand and Collection Register of the preceding year. He should write his full name below the certificate while appending his signatures. The work of carrying forward the arrear demand should be completed by 15th May. 5. Regarding the verification/reconciliation of arrear demand, Board's Instruction No.123 dated 6.11.69 (F.No.5/5/69-IT. Audit) is hereby modified. The work of verification and reconciliation of arrear demand in each ITO's Ward/District will, henceforth, be done by a special squad headed by an experienced Head Clerk or a Supervisor and constituted by the Inspecting Assistant Commissioner from among the staff working in his own range instead of by the officials of another IAC Range. The Head Clerk or the Supervisor should sign, after verification by the squad, the certificate of authenticity and reconciliation, in the Demand and Collection Register, of the brought forward arrear demand of each ITO's ward/District of that Range including mofussil Income-tax officers. The work of verification and reconciliation should be planned that it is completed by the 15th June in respect of the arrear demand brought forward as on 1st April each year. 6. Each Income-tax Officer should test-check 5% of the entries relating to the arrear demand carried over into the new Register. It is clarified that the overall responsibility for the carrying over correctly of all the entries of the arrear demand is that of the Income-tax Officer. He should, therefore, check more than 5% of the entries if he finds, on test-check, that the arrear demand has not been carried forward to the new Demand and Collection Register correctly. 7. The work of carrying forward the arrear demand to the new Demand and Collection Register correctly. 8. The work of carrying forward the arrear demand to the new Demand and Collection Register and its verification/reconciliation should be so planned that it is definitely completed in June every year. A certificate of the demand having been carried over to the new Demand and Collection Register and having been verified should be sent by each Income-tax Officer to the Inspecting Assistant Commissioner concerned by 30th June.