Implementation of Compulsory Deposit Scheme, 1974. - Income Tax - 1485/CBDT

INSTRUCTION NO. 1485/CBDT Dated: September 20, 1982 In para 3.23 of the C AG Report for the Year 1980-91, Audit has made a General review of the implementation of the Compulsory Deposit (income-tax Payers) Scheme, 1974. Based on a test check conducted in 127 wards in 25 Commissioner Charges, Audit has observed that deposits amounting to Rs. 86,50,000 had not been made by 10,428 assessees in respect of the assessment years 1977-78, 1978-79 and 1979-80. These figures would clearly indicate that the scheme is not being properly implemented by the field officers. Proper records to watch the payment and recovery of compulsory deposits were not maintained in 124 cases out of 127 Wards. This is not a happy state of affairs. 2. In view of the above adverse observations contained in the Audit Report, the Board desire that the Commissioners should impress upon their field officers the urgent need to implement the provisions of the Compulsory Deposit Act in its true spirit. The Income-tax Officers should immediately start maintaining a register as per Annexure enclosed. They should scrutinise the returns at the assessment stage and the particulars of such assessees who are liable to make payment of compulsory deposits but have either not paid at all or have made short payment, should be immediately entered in this register and recovery action started against them. The ITOs should personally check the register periodically and initiate penalty proceedings wherever applicable. 3. As there is no time limit prescribed under the said Act for the imposition of penalty, the ITOs should review all cases where assessments have been completed during the financial year 1979-80 onwards till date, in order to see whether recovery proceedings are called for and enforce recovery or initiate proceedings as the case may be. It is further desired that all such penalty proceedings should be completed expeditiously. 4. The Range IACs should also check up the proper maintenance of this register during the course of their surprise inspections and/or annual inspections. 5. The above instructions may please be brought to the notice of the field officers. Hindi version is attached herewith/will follow.