Timely disposal of applications u/s 154. - Income Tax - 1091/CBDT

INSTRUCTION NO. 1091/CBDT Dated : August 30, 1977 Section(s) Referred: 154 Statute: Income - Tax Act, 1961 The timely disposal of applications u/s 154 especially rectification applications where taxes paid or refunds due have not been properly adjusted, needed no emphasis. Failure in this regard not only results in inflating the outstanding demand but also lead to issue of recovery certificates in cases where taxes are already paid or refunds due are not adjusted in time. Of late, several complaints have been received by the Board in this regard. The Board, therefore, desire that all rectification applications particularly where adjustments of prepaid taxes or refunds due are not properly made should be attended to within a month and in no case they should remain pending for a period of more than three months. All Inspecting authorities should lay special emphasis on this aspect of ITO's work during Inspections and suitable action should be taken in cases of failure.