Checking of statements/estimates in lieu of statements filed by assessees. - Income Tax - 1545/CBDT

INSTRUCTION NO. 1545/CBDT Dated: January 5, 1984 Reference is invited to DOMS Circular No.31 (F.No.10/5/78-WS/DOMS), dated the 14th September, 1978 wherein detailed instructions were given on introduction of new Section 209A by the Finance Act, 1978. In para 6 of the Appendix to the Circular, it has been stated that the statements/estimates in lieu of the statement filed by the existing assessees should be checked to ensure that the total income and the tax thereon have been correctly declared. Recently, a review was made of these provisions and the Board have decided that the statements/estimates in lieu of the statements filed by the assessee should be checked by a UDC other than the one making the entries of the estimates/statements in the D CR by Head Clerk or by an Inspector with a view to ensuring that the total income and the tax thereon have been correctly declared. This check should be exercised immediately after the entries of the estimates/statements have been made in the D CRs by the dealing Clerk. There is no change in the existing limit for purposes of checking viz. cases in which the total income is Rs.25,000 and more. As a result of the amendment, para 5 of the Appendix to the Circular may be read as under:- "It has been decided that the statements/estimates in lieu of the statements filed by the assessees should be checked by a UDC other than the one making entries of the estimates/statements in the D CR or by a Head Clerk or by an Inspector with a view to ensure that the total income and the tax thereon have been correctly declared. This check should be exercised immediately after the entries of the estimates/statements have been made in the D CRs by the dealing Clerk. To keep the clerical work involved to the minimum, however, it is proposed to limit checks to cases in which the total income is Rs.25,000 or more. If the checking discloses mistakes involving additional tax of Rs.1,000 or more, the Income-tax Officer, should bring the mistake to the notice of the assessee and request him to amend the statement/estimates and to pay the additional tax due. The penal provisions which are applicable, if the mistakes are not so rectified, may be brought to the notice of the assessee." 2. The above procedure may be brought to the notice of all ITOs charge. It should be given effect to immediately.