844/CBDT. - Income Tax - 844/CBDT

INSTRUCTION NO. 844/CBDT Dated : May 12, 1975 Section(s) Referred: 220(2) ,118 ,119 Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction No. 805 F. No. 404/301/74-ITCC dated the 22nd/27th November, 1974 wherein attention was drawn to the defaults committed by the Income-tax Officers in complying with the provisions of Rule 118 of the Income-tax Rules, 1962. As a result of review of the information regarding the performance of Tax Recovery Officers during the period of 1st April, 1973 to 31st December, 1973, furnished by the Commissioners of Income-tax in response to Board's letter F.No. 404/305/74-ITCC dated the 16th December, 1974, instances have now come to the notice of the Board where interest was not found to have been charged by the Income-tax Officers, at the time of issuing certificates u/s 222 of the Income-tax Act, 1961, on the amount of arrears of tax, penalty, or other sum, upto the date of issue of the certificate, in accordance with the provisions of Rule 119(1) of the Income-tax Rules 1962, and accordingly, it was also not indicated in the certificates in accordance with Rule 119(2). It has further come to the notice of the Board that the Tax Recovery Officers also failed to calculate and collect, along with the amount of tax, penalty, or other sum, mentioned in the certificate, interest which accrued on the aforesaid amounts for the period commencing immediately after the date is issue of the certificate upto the date of recovery of the demand by them. 2. The Board desire that the attention of the Income-tax Officers/Tax Recovery Officers should specifically be drawn to the provisions of Rule 119 of the Income-tax Rules, 1962 and they should be directed to strictly comply with these provisions. 3. With a view to ensuring proper compliance with Rules 118 and 119, the Inspecting Asst. Commissioners of Income-tax should be directed to carry out a half-yearly review of the work of the Income-tax Officers/Tax Recovery Officers for the half-years ended 30th September and 31st March to find out whether, (i) interest has been charged by the Income-tax Officers at the end of each financial year on the demands outstanding at the end of the said financial year; (ii) interest has been charged by the Income-tax Officer upto the date of payment of the outstanding demands, in accordance with the provisions of Rule 118(2); (iii) interest has been charged by the Income-tax Officers at the time of issue of Recovery Certificates in accordance with Rule 119(1) and indicates in the certificate; and (iv) interest has been charged and collected along with the outstanding demand shown in the Recovery Certificate in accordance with the provisions of Rule 119(3). 4. You should also obtain from the Inspecting Asst. Commissioners of Income-tax a report on the reviews carried out by them and send a copy thereof to the Board with your comments so as to reach the Board by 15th November and 15th May.