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TMI BlogDirection for not collecting payment of taxes etc. in any form during search u/s 132 or survey u/s 133A of Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... an Extension, New Delhi - 110055 Dated, the 10th July, 2017 To All Principal Chief Commissioners of Income Tax (CCA) All Directors General of Income tax (Inv) The Director General of Income Tax (I&CI) Sir/Madam, Sub : Direction for not collecting payment of taxes etc. in any form during search u/s 132 or survey u/s 133A of Income Tax Act, 1961 This is brought to the notice of all con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves by cheque. The Court has referred to an earlier judgment in the case of Capri Bathaid Private Limited vs. Commissioner of Trade & Taxes 2016 (155) DRJ 526 where it was held, "The tax demand crystallizes only upon an assessment. In any event, even if a dealer volunteers to deposit the disputed tax amount, he should be asked to deposit the said amount in the counter designated for that purpose. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orized officers conducting searches/ surveys collect post-dated cheques toward future demands or as self-assessment tax/ advance tax". 2. The matter has received serious attention of the Board. Neither the Income Tax Act, 1961 nor any instruction issued by the Board authorizes any Income Tax authority to collect payment of taxes etc. in any form during search/survey in respect of income of past p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3A or advance tax on current income, search/ survey officials shall not accept such cheques and, instead, guide or advise the assessee to deposit the cheque(s) in bank. 4. Income Tax authorities approving search/ survey shall mention following words in the authorization letter, "This authorization shall not confer any authority to collect payment of any tax in any manner including cheque in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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