Demonetisation of high denomination bank notes. - Income Tax - 1260/CBDT

INSTRUCTION NO. 1260/CBDT Dated : May 26, 1979 Reference is invited to the Instruction No.*1140[F.No.414/3/78IT(Inv)], dated 21st January, 1978 giving detailed instructions regarding the follow-up measures to be adopted in connection with demonetisation of the high denomination bank notes including the form in which monthly progress report was to be made. Subsequently, vide Member (Investigation) D.O of even No, dated 30th January, 1979 the Commissioners were requested to furnish to D.I.(R.S. P) information and certificates to the following effect along with their respective reports for the month of February, 1979. (a) A certificate regarding collection of all the declarations and complete verification with the banks concerned; (b) Confirmation to the effect that Preliminary enquiry/survey has been made in all cases of declarations of Rs.10,000 or more; and (c) A statement in triplicate in the prescribed forms in respect of all persons who tendered notes of value of Rs.1 lakh or more. The D.I.'s review for the month of February, 1979 states that the requisite certificates etc., have not been received by him from many Commissioner of Income-tax charges. The defaulting Commissioners of Income-tax may please arrange to furnish the same to the D.I. without further delay. 2. The Board have reviewed the proforma for monthly progress report in the light of the information furnished by the Commissioners. Having regard to our present requirements, it has been found necessary to revise the proforma. The new proforma is annexed. Commissioners are requested to furnish the monthly progress report in the new proforma with effect from the report for June, 1979 so as to reach D.I. (RS P) by 10th day of the following month. The major changes in the proforma and reasons therefor are explained as follows: (i) Item 1 of the new Proforma has been so devised as to show at a glance the number of declarations collected from the banks, number yet to be collected and the number required to be dealt with in a particular charge. (ii) Classification of the declaration between business and non-business categories has been discontinued. Since our present interest is for expeditious disposal of the more important declarations, classification is now made between declaration of high denomination notes involving Rs.10,000 or more and those involving less than Rs.10,000. This charge has been effected in new column '5'. (iii) Item 5(c) of the new proforma will show to the Commissioners of Income-tax at a glance separately the number of declarations regarding which the preliminary enquiries have been done and the remaining declarations in which this action is still pending and therefore requires immediate attention. (iv) It will be observed that it is no longer necessary to indicate the number of owners except against items (3)and (4) of the new proforma. 3. As advised by Member (Investigation) in para '2' of his D.O. letter of 30th January, 1979, in cases in which the enquiries have been completed and the source of notes tendered is not satisfactorily explained, the requisite assessments should be made without any avoidable delay and penalty proceedings initiated wherever warranted; prosecutions in all liable cases being also launched expeditiously.