Taxability u/s 41 of refunds of Excise. - Income Tax - 1376/CBDT

INSTRUCTION NO. 1376/CBDT Dated: January 22, 1981 Recently the PAC had occassion to consider an Audit Para relating to Central Board of Excise and Customs regarding refund of amounts paid by them by way of Excise duty as a result of orders passed in appeal or otherwise The committee was also supplied with information in respect of cases where refund of Excise Duty amounting to Rs.50,000 and above was allowed during the three years ending 31st March 1980. Though the Central Board of Excise and customs have issued Instructions to its field formations asking them to report invariably such refunds to the I.T.Department it may happen that all such refunds are not reported to the I.T.Authorities. 2. Details relating to refunds allowed to assessees assessed in your Charge are enclosed. The Board desire that you should verify in the case of each assessee in your Charge whether the amount or amounts refunded to them have been brought to account for the purposes of Income-tax u/s.41 of the Income-tax Act. A compliance report may please be sent positively on or before 30th April 1981. 3.The Board also desire that you should arrange to collect suo motu particulars of such refunds exceeding Rs.50,000 without waiting for statements to be sent to you by the officers of the Central Excise Department and the Board may be informed of the steps taken in this direction.