Scrutiny of returns for compliance with Sec.140A. - Income Tax - 1547/CBDT

INSTRUCTION NO. 1547/CBDT Dated: January 9, 1984 Attention is invited to instructions contained in Board's letter F.No.370/73/78-IT(B), dated the 12th December, 1978 in which it was desired that the returns of income in company cases with returned income of Rs.5,000 or more and in the case of non-company assessees where the income returned is Rs.25,000 or more should be scrutinised with a view to see if the tax on self-assessment has been duly paid. This was to be watched by calling for certificates from all the Income-tax Officers that the scrutiny has been completed and appropriate action taken. A Study by the Inspection Division of the Board has revealed that failure to take action in cases of default under section 140A continues. 2. The Board wish to reiterate their earlier instructions, with the modification that returns in the cases of companies with income of above Rs.10,000 and returns in non-company cases with incomes above Rs.50,000 should be scrutinised for compliance with the provisions of section 140A. in cases where the tax on self-assessment has not been paid, show cause notices u/s 140A(3) should be issued and penalty levied in appropriate cases. 3. The above instructions may please be brought to the notice of all the officers working in your charge.