848/CBDT. - Income Tax - 848/CBDT

INSTRUCTION NO. 848/CBDT Dated : July 8, 1975 Section(s) Referred: 230 Statute: Income - Tax Act, 1961 Reference is invited to Para 5(v) and (vi) of Chapter XXI of Office Manual Volume II, Section II, dealing with the procedure for issue of Income-tax Verification/Clearance Certificate which reads as under:- "5. (v) At the time of the next assessment year the applications should be placed in their respective miscellaneous files with an entry on the order-sheet to this effect. At the time of making regular assessment the Income-tax Officer should verify as to whether Income-tax Clearance Certificates have been fully utilised and the business results arising there from have been declared in the return of income. (vi) In case the applicant is not an existing assessee, a file should be started and the name noted in the Trial Register for necessary action in the following year as indicated above". 2. Instances have come to the notice of the Board where the above procedure is not being followed carefully, with the result that information in the application form for issue of Income-tax Verification/Clearance Certificate, has not been utilised in the assessment, i.e., whether the income from the import licence acquired or the contract obtained has been accounted for in the return filed by the assessee. 3. The Board desire that the above instructions should be scrupulously followed by the Income-tax Officers and the staff working under them. The Inspecting Asst. Commissioners should also inspect this aspect of the work and suitable action may be taken against the erring officials.