INCOME TAX

INSTRUCTION NO. 1897/1992

 Dated: August 31, 1992

As you are aware, the mounting income-tax arrears have been a matter of great concern over the last few years. Reduction of outstanding demand has, therefore, been made one of the key result areas in the Central Action Plans for several years. In this context, proper control over arrear entries assumes great importance.

The Conference of the CCsIT & CsIT held in June, 1992 had suggested that instructions should be issued regarding the bunching together of all the entries of outstanding demand pertaining to each assessee. The intention is to prepare a "Ledger Folio" for each assessee against whom there is some arrear demand.

3. This suggestion has been carefully considered by the Board. The total number of arrear entries is so large that at present it is very difficult to bunch them together, assessee-wise. At the same time, a beginning has to be made to evolve a method whereby the total net arrear demand due from each assessee, in the more important cases can be located at a glance.

4. The Board has, therefore, decided that for the present all arrear entries in respect of only the following assessees should be bunched together:

i) All cases of limited companies, both private and public;

ii)All cases assessed by Deputy Commissioners(Special Ranges);

iii) All cases assessed in Central Circles; and

iv) All cases assessed by Assistant commissioners.

5. The assessing officer should maintain a register in which one or more pages may be allotted to each assessee. In this register, the name of the assessee, full address, the PAN and the details of all demand outstanding year-wise should be written from the existing D & CRs. The idea is that the demands pertaining to each assessee are brought together at one place so that it would help the assessing officers in monitoring the recovery of demand. In the first instance all entries of demand should be grouped assessee-wise. This register should be updated every month to take into account fresh demand created or old demand collected or reduced. It may be clarified that this register would be in addition to the existing D & CRs which would continue to be maintained.

6. The work of bunching together of entries of all demands pertaining to each assessee should be done manually. Only in those centres where computers are under-utilised, should such computers be used for this purpose.

7. Each Chief Commissioner may devise his own format of the aforesaid Register. An Alphabetical index will be useful.

8. The Board desire that the work relating to bunching of entries of outstanding demand as indicated above, should be started immediately and completed by 31-10-92.