Provisional assessments u/s.7 of Companies (Profits) Surtax Act, 1964. - Income Tax - 1218/CBDT

INSTRUCTION NO. 1218/CBDT Dated : November 23, 1978 Section(s) Referred: 7 Statute: Surtax Act It has been noticed by the Board that in some Commissioners charges provisional assessments u/s.7 of the Companies(Profits) Surtax Act, 1964 are not being completed even in cases where the completion of regular assessments are likely to take a long time. As you are aware the provisional assessments under the said Act can be completed even without the returns of chargeable profits having been furnished by the assessee companies at any time after the expiry of the period allowed under sub-section 1 or sub-section 2 of section 5 for furnishing the returns. 2. The Board, therefore, desire that urgent steps may please be taken by the officers of your charge to complete provisional assessments in all suitable cases where the regular assessments under the companies(Profits) surtax Act, 1964 are not likely to be completed before the end of the current financial year. As far as possible the entire demand thus raised should be collected before 31-3-79 in order to maximise the budget collections of Corporation-tax of the current year. 3. In future also, where the regular assessment of a company under the Surtax Act is not likely to be completed within a financial year, steps should be taken well in time to complete the provisional assessment and to collect the demand so raised in that year. 4. A report about the action taken in pursuance of the directions contained in para 2 of the letter and the demand raised as a result thereof may please sent to the Board by the 20th December, 1978.