Procedure for giving credit to a tax payer. - Income Tax - 1225/CBDT

INSTRUCTION NO. 1225/CBDT Dated : December 13, 1978 I am directed to refer to Board's Instruction No. 611A(F.No.3/27/68-IT(B) dated 7-9-73 on the above subject wherein the procedure for giving credit to a tax payer in a case where either the 'original' foil of the receipted challan was not in the file or it was not easily traceable was relaxed and made applicable to the payments of direct taxes upto 31-3-72. It was represented to the Board that the relaxed procedure proved quite useful in reducing the tax arrears and that the same should continue further. 2. The matter has been examined in consultation with the C GA. It has been decided to extend the relaxed procedure to cover payment of direct taxes made after 31-3-72. In respect of the payments made after the introduction at any place of the scheme of acceptance of taxes by public sector banks in addition to the R.B.I. and S.B.I. a simplified procedure, consisting of verifying the payment from the 'Receipt Scroll' of the bank has also been prescribed. 3. The relaxed procedure as per the Board's earlier Instruction No 28 [F.No. 3/27/68-IT(B) dated 7th September, 1973 and the simplified procedure now devised are given in the Annex.] 4. Every ITO will please exercise a strict control over the entry of the challans in the respective Daily Collection Registers/D CRs and their placement on the miscellaneous file of the concerned tax payer for the relevant assessment year regularly so as to keep the number of missing challans to the barest minimum. The Tax-payment Verification Register (TVR) prescribed vide, Appendix I to the annex should be made available to the RAP for the purposes of checking. The IAC will also test check the entries in the said register at the time of vigilance/regular inspection. 5. The requirements of the TVR and the form of letter on Appendix-II to the Annex for about 2 years may please be got printed locally by the respective CsIT. Thereafter, the supplies will be arranged centrally by DI(RS P), New Delhi. 6. It will be seen from Part C of the Annex that the simplified procedure requires verification from the entry in the Receipt Scroll of the concerned Bank's branch. It is, therefore, essential that such scrolls are carefully preserved in the CTUs/LTUs. They may be got bound, date wise and bank wise together with the covering scrolls of the link branches of the banks concerned. 7. Meetings at various levels within each CIT's viz among CIT and his IACs, IAC and his ITOs and ITO and his staff charge may please be held to discuss the procedure prescribed in this Instruction and in intensive drive launched immediately in each Commissioners charge to give credit to the tax payers in respect of missing challans in all pending cases before 31-3-79. This will not only reduce the infructuous tax arrears from the D CRs but will also go a long way in improving the public relations of the department. 8. Sufficient number of copies of this Instruction shall be made available by DI(RS P) for all the officers and concerned staff in the Income-tax Department.