Timely Issuance of Demand Notices Crucial Under Income Tax Act, 1961, Section 156; Delays Spark Management Concerns.

The circular emphasizes the importance of timely issuance and service of demand notices and challans under the Income Tax Act, 1961, as per Section 156. It highlights previous instructions for serving these notices within two weeks of assessment completion. Despite these guidelines, delays of 1-3 months have been reported, raising concerns about the effectiveness of middle-level management. With the shift to a unitary system, Income-tax Officers must maintain the Demand and Collection Register, ensuring proper tracking of notice issuance and service. Inspecting Assistant Commissioners are advised to conduct test checks to ensure compliance and control.

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