Arrear demand to new D & CR and its verification/ reconciliation. - Income Tax - 1174/CBDT

INSTRUCTION NO. 1174/CBDT Dated : May 16, 1978 In accordance with the Board's Instruction No.1061 dated 25th May, 1977 it is hoped that the work of carry forward of the arrear demand to the new D CR and its verification/ reconciliation has already been taken up in your charge so that it is completed latest by the 30th June, 1978 in respect of the demand that is to be brought forward as on 1st April, 1978. 2. It is hoped that the challan counter-foils for the payments made upto 31st March, 1978 would have been entered in the D CRs by now. This will give the ITOs sufficient time for the carry forward of the demands in new registers and for verification/reconciliation. 3. You are, therefore, requested to issue immediate directions to the field formations so that the new D CRs are ready and the work of reconciliation and verification of arrears is completed by 30-6-78. This time schedule must be followed strictly. 4. After the demands are carried forward, verified and reconciled you may please send a letter to the DOMS certifying that all the demands in arrear on 1-4-78 have been duly carried forward in the new D CR and that the demands have also been reconciled and verified. This certificate should reach the DOMS by 10-7-78. 5. In the past some discrepancies have been noticed in the figures of arrear demand on 1st April as reported in the MPR, those reported in the Control statistics for the action plan, and those shown in other statements. You should please ensure that during this year figures of arrear demands as derived for the new D CRs are shown in all the reports and returns that are sent and the figures are not changed. If there are any variations in any month, proper reasons for the variation may please be indicated in the statement itself. 6. Apart from the discrepancies in the figures of arrear demand reported in different statements, it has been noticed that the figures of arrear demand carried over at the end of a year differ in the quarterly statements for the subsequent year. In case the arrears are properly carried over and properly verified as per standing instructions there is no reason why the figures of arrear demand should undergo a change. You are requested to take steps to see that in future there is no variation in the figures of carried forward arrear demand at the end of a year in the quarterly statements of tax arrears for the subsequent year, except for demands received/sent out on transfer of files. If there are any variations, proper explanations should be appended to the Quarterly statement concerned. 7. Instances have also come to the notice of the Board where tax arrears transferred from one commissioner's charge to another are not acknowledged expeditiously with the result they are shown as arrears both by the transferring commissioner and the receiving commissioner and in this way the figures of tax arrears get inflated. At the instance of the board, already requested you to furnish the lists of such cases. The Board desires that this is an item of work where the commissioner receiving the arrears on transfer should see that the acknowledgment is sent to the transferring commissioner at the most within a month of the receipt of the assessment records. The Board hopes that necessary control will be exercised by the commissioners in future. In respect of the arrears received on transfer upto 31-3-78, the CsIT should obtain certificates from the ITOs through their IACs to the effect that the intimations have been sent to the transferring commissioners and on the basis of such certificate send a certificate to the DI(R S), New Delhi by 15-6-78 indicating therein that the intimations in respect of tax arrears received on transfer upto 31-3-78 have been sent to the transferring Commissioners.