Home Circulars 1981 Income Tax Income Tax - 1981 Order-Instruction - 1981 This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Rectifications u/s 154. - Income Tax - 1429/CBDTExtract INSTRUCTION NO. 1429/CBDT Dated: November 19, 1981 In a recent meeting of the Board, the report of the Directorate of O M Services(IT) suggesting measures for reducing instructions, appeals and references was considered. para 2.10 of the said report of DOMS is reproduced below:- A large number of appeals are filed against rectifications made u/s.154. The statistics in regard to applications for rectification seem to be incomplete. Many ITOs seem to account for rectification applications only when they take them up for disposal. A sample study made by the DOMS in the course of the work study of the clerical staff has shown that the percentage of applications for rectification to assessments was as high as 36% during the sample period. This discloses a sad state of affairs and indicates that assessments are being made without adequate care. Apart from asking the ITOs to be more careful in making assessments and in giving credit for pre-assessment payment of taxes the group feels that it would be necessary to ask the IAC to keep this aspect of the work in their mind while writing the CCRs of the officers . The need for large scale rectifications should be considered as indicative of perfunctory work on the part of ITO. 2. The Board have accepted the above recommendations. The genesis of such rectification applications is generally attributable to one or more of the following causes:- a) Failure to give credit for pre-assessment payment of taxes; b) Incorrect charging of interest; c) Arithmetical mistakes in the computation of total income; d) Non-consideration of claims for reduction or relief without assigning any reasons thereof in the assessment order. 3. In such situations, the tax payer is left with no other go, except to file a rectification application u/s.154 in the first instance and thereafter carry the matter in appeal against adverse decision in regard to the rectification application. Such litigation is not only wholly unproductive, but also tarnishes the image of the Department. It also affects the cordial relationship with the tax payers. 4. The Board desire that IACs should keep these aspects in view when making the annual appraisal of the ITOs work through the CCRs. 5. The above instructions may be suitably brought to the notice of all the officers working under your charge.
|