Opening of Personal Deposit Account. - Income Tax - 1745/CBDT

INSTRUCTION NO. 1745/CBDT Dated: January 22, 1987 Attention is invited to Board's letter No. 380/5/84-IT(B) dated 31-13-1985 wherein it was stressed that Personal Deposit Account should be opened only with the approval of the Board. It has been reported by the CCA (CBDT) that some of the Commissioner/Tax Recovery Officers are opening unauthorised current account in Nationalised Banks for depositing and drawing of money seized during search/raid etc. In one case the account is being operated since 1977 onwards. According to para 6.7(a) of the Revenue Account Manual, money seized during the raids etc. should be kept in the focal point bank by the Commissioner of Income-tax (Headquarters) with the sanction of the Government. It is found that these accounts were opened without the prior sanction of the CBDT/CCA with the result that the entire transactions have remained outside the Government Account. This is a very serious lapse. It is, therefore, requested that cases of this type should be avoided in future. In all cases where the money is seized as a result of search, the same should be deposited in Personal Deposit Account. In case there is no Personal Deposit Account a formal request should be made to the Board for opening such account. The necessary Personal Deposit Account should be opened only on receipt of the sanction of the Board. It is hoped that the lapses of this nature mentioned above will be avoided in future, as otherwise this is likely to result in adverse criticism by the Comptroller Auditor General of India and the Public Accounts Committee. Please acknowledge receipt of this letter and also intimate the full details of Personal Deposit Account being operated in your charge (refer to Board's sanction letter).