INCOME TAX

Procedure to be adopted for obtaining prior approval for issue of refunds

INSTRUCTION NO. 1910/1993

 Dated: September 2, 1993

In partial modification of Board's Instruction No.1889 dated 30-9-91 the following procedure should be adopted for obtaining prior approval for issue of refunds

2. Para 4 of the above cited instruction is deleted with immediate effect. In the result henceforth no prior approval of the CIT will be necessary for issue of refunds. So far as the procedure laid down in para 3 is concerned, the assessing officer shall seek the approval of the DC in cases where the amount of refund mentioned therein exceeds Rs.1 lakh. Where the assessing officer is a DC himself will be responsible for ensuring the correctness of the refund and he should follow the procedure laid down in para 2 of instruction No.1889.

3. Each CCIT should evolve an effective monitoring system, keeping in view the circumstances in his region, to ensure prevention of frauds and granting of correct refunds. For this purpose the CCsIT may, if necessary involve the CsIT in the checking of large refunds.