Administration of Section 139A of Income Tax Act, 1961. - Income Tax - 1252/CBDT

INSTRUCTION NO. 1252/CBDT Dated : April 24, 1979 Section(s) Referred: 139A Statute: Income - Tax Act, 1961 The Comptroller Auditor General of India has proposed a draft para regarding the administration of Section 139A. A copy of the draft para has already been forwarded to all the Commissioners alongwith the Board's letter number F.No.236/375/78-A PAC-II, dated 29th December, 1978. 2. This para when included in the Comptroller Auditor General's Report for 1977-78, is most likely to come up for discussion before the Public Accounts Committee. Remedial actions to set right the deficiency and short-comings that have been noticed and pointed out by the Receipt Audit have to be indicated forthwith. It is, therefore, requested that following actions should be taken in hand immediately and completed by the end of May, 1979: (i) All the GIRs/Blue Books should be screened to ensure that in all live cases as on 31.3.1979, PANs are allotted. It should also be ensured that the PANs are communicated to all the assessees. The number of cases in which PANs were not allotted as on 31.3.78/31.3.79 be given with broad reasons therefor. (ii) The `Register of PAN' as laid down by the Board should be maintained and uptodate entries made therein. The reasons for non-maintenance/improper maintenance of these registersshould be given. (iii) In cases where PANs have been allotted, more than once, the position should be reviewed and extra PANs should be cancelled immediately. Give the number of such cases as on 31st March, 1978 and 31st March, 1979. Indicate the reasons for non-cancellation of such PANs , if any, as on 31.5.1979. (iv) PAN' allotted to cases which are not `live' and in which no proceedings are pending should be cancelled. Give the number of such cases as on 31.3.78 and 31.3.79. Indicate the reasons for non-cancellation of such PANs, if any , as on 31.5.1979. (v) Records for the period 1.4.76 to 31.3.79 should be checked to find out the cases where: (a) the applications for PAN were not received by the due date; (b) the assessees who have been allotted PAN and who have not quoted the same in challans and other correspondence. The following information in regard to such cases as on 31.3.78 and 31.3.1979 may be given separately: (1) The number of such cases; (2) (a) In how many cases penalty proceedings were initiated upto 31.3.1978 and 31.3.79; (b) Out of (a) above, how many have been finalised; (c) Out of (b) above, in how many cases penalty was levied and the amount thereof. The question of issuance of show cause notice under section 272B and levy of penalty in all suitable cases should be examined. The number of cases in which such notices are issued between 1.4.79 and 31.5.79 may also be given. 3. A compliance report may be sent to the Director of Inspection (Income-tax Audit) by 15th June, 1979. 4. You are further requested to take necessary steps to ensure that the type of deficiencies noticed by the Audit relating to the working of provisions of section 139-A are not repeated in future. A copy of the instructions issued by you to your field officers may be endorsed to the Director of Inspection (Income-tax Audit) and to the Board for information and record.