INCOME TAX
INSTRUCTION NO. 7/2006
Dated: October 10, 2006
Subject:
Centralised Processing of Returns furnished with Post-offices/electronically -
reg.
The Central Board of Direct Taxes have notified following new return forms for
Assessment Year 2006-07:-
(i) Form No.2F vide Notification S.O.No.848 (E) effective from 1st June, 2006.
(ii) Form No.1, Form No.2, Form No.3, and Form No.3B vide Notification S.O. No.
1163(E) effective from 24.7.2006.
These Forms are available at http://incometaxindiaefiling.gov.in. If a taxpayer
intends to file a return for any earlier assessment year he will have to use
the old forms.
2. It has been made mandatory to furnish e-return by the corporate taxpayers
after 24.7.2006. However, for other taxpayers it is optional to furnish the
return electronically. Some important aspects relating to these new forms and
furnishing thereof electronically have been clarified by the Board vide
Circular No. 9/2006 dated 10.10.2006. It is imperative that this Circular may
be carefully gone through.
3. It has been decided by the Board that the following returns are to be
processed centrally:-
(i) Returns furnished at postal offices.
(ii) Returns furnished under the Electronic Furnishing of Return of Income
Scheme, 2004 [Notified vide S.O. No. 1073(E) dated 30.9.2004]. Under this
Scheme, e-return has to be filed through e-Return Intermediary, followed by a
paper return.
(iii) Returns furnished under the Furnishing of Return of Income Internet
Scheme, 2004. [Notified vide S.O. No. 1074(E) dated 30.9.2004].
(iv) Returns furnished under two step-procedure. First step is to transmit the
details of the return and schedules thereto electronically (without digital
signature and thereafter to furnish a paper return.
(v) Returns furnished under digital signature.
4. For centralised processing of above mentioned returns, following procedure
has to be followed:-
(i) In the region of each Regional Computer Centre (RCC)/Computer Centre, the
concerned Chief Commissioner of Income-tax shall designate at least one officer
to ensure that all the returns furnished with the postal offices are collected
and stored centrally.
(ii) As mentioned in item (vii) of para 6 of Circular 9/2006 dated 10.10.2006,
concerned Chief Commissioner/Director General of Income-tax shall make
necessary arrangement to separately receive the paper returns in respect of
e-returns. These returns shall be transferred to the Assessing Officer
designated for centralised processing of these returns.
(iii) Every cadre Controlling Chief Commissioner, in consultation with other
Chief Commissioners/ Directors General of Income-tax of his region will decide
the number of Assessing Officers (hereafter named as designated Assessing
Officers) required for centralised processing of the above mentioned returns
for each RCC/CC in his region. The designated Assessing Officer should be based
at net-work stations only.
(iv) Every Chief Commissioner/Director General of Income-tax shall pass an
order assigning concurrent jurisdiction to the Assessing Officers selected by
the Cadre Controlling Chief Commissioner in accordance with (iii) above for
purpose of processing the return under section 143(1). The concurrent
jurisdiction to the designated Assessing Officer shall be only in respect of
the following:-
a. processing of the return under section 143(1);
b. issue of intimation/demand notice/issue of refund in respect of processing under 143(1);
c.
rectification under section 154 in respect of such processing;
The Board has issued Notification S.O.No.1743(E) dated 10.10.2006 authorising
every Chief Commissioner and Director General of Income-tax to issue orders for
exercising concurrent jurisdiction in this regard by such designated Assessing
Officer(s) over all the cases assessed or assessable with the Assessing
Officers subordinate to him.
(v) Where more than one Assessing Officer has been designated by the Cadre
Controlling Chief Commissioner for a RCC or CC, it should be ensured by each
Chief Commissioner/Director General in his region that all such designated
Assessing Officers are assigned the jurisdiction concurrently for the purpose
of centralised processing of the returns.
(iv) The cadre Controlling Chief Commissioner of Income-tax shall ensure that
adequate number of Senior Tax Assistants/Tax Assistants (erstwhile Data Entry
Operators) are posted with the designated officers for data entry and
processing of paper returns.
(v) The Joint Commissioner/Additional Commissioner of Income-tax, Commissioner
of Income-tax, Commissioner of Income-tax (Appeals) or Chief Commissioner of
Income-tax will continue to hold the jurisdiction over such processed returns,
as at present.
(vi) The jurisdiction over a case for all the actions after selection of the
case for scrutiny shall rest with the Assessing Officer with whom the
designated Assessing Officer exercises the concurrent jurisdiction.
(vii) The processing of revised returns in above-mentioned cases will also be
carried out centrally by the designated Assessing Officers.
(viii) Where e-return does not tally with the paper return, the designated
Assessing Officer shall correct the data in the e-return and process the case
accordingly.
(ix) The designated Assessing Officer shall generate intimation in every case
and send the same under his signature. The demand notice or refund, if any,
shall also be issued by the designated Assessing Officer.
(x) If the return of income is filed in Form No.2F, or the new annexure-less
Form No.1 or new annexure- less Form No.2 or new annexure-less Form No. 3,
credit for TDS/TCS shall be given on the basis of information furnished in the
return as if the TDS/TCS certificates were filed. It is not necessary to
undertake verification of all TDS claims except in select cases as required in
Chapter-9 of Paragraph 22 of Volume-II of the Manual of Office Procedure.
(xi) If there is a refund, the designated Assessing Officer shall, before
completing the processing of the return, adjust the demand, if any, outstanding
as per Individual Running Ledger Account (IRLA).
(xii) If the amount of refund after adjustment of demand as per IRLA does not
exceed Rs. 25,000/-, the processing shall be completed and the refund, if any,
shall be issued forthwith.
(xiii) If the amount of refund after adjustment of demand as per IRLA exceeds
Rs. 25,000/-, the designated Assessing Officer shall send a letter to the concerned
Chief Commissioner/Director General of Income-tax requesting him to intimate
the demand, if any, outstanding in the record of the Assessing Officer. The
concerned Chief Commissioner/Director General of Income-tax shall, within 15
days from the receipt of such letter, intimate the demand, if any, to be
adjusted by the designated Assessing Officer. The refund, if any, shall be
issued within 20 days from the date of sending the letter to the Chief
Commissioner/Director General of Income-tax.
(xiv) No separate approval of refund by CCIT/CIT/Addl. CIT/JCIT shall be
required.
(xv) Copy of demand notice/intimation slip shall also be sent to the Assessing
Officer with whom the designated Assessing Officer exercises the concurrent
jurisdiction.
(xvi) The paper returns processed by the designated Assessing Officer shall be
centrally stored with the designated Assessing Officer. If required, the
Assessing Officer with whom the designated Assessing Officer exercises the
concurrent jurisdiction may obtain a copy of the return from the designated
Assessing Officer.
(xvii) In case of any default noticed by the designated Assessing Officer which
may attract any penalty provision, the designated Assessing Officer shall
intimate the same to the Assessing Officer for taking the decision to initiate
or not to initiate the penalty proceedings. No penalty proceeding shall be
initiated by the designated Assessing Officer.
F.No.133/38/2006-TPL
(Sharat Chandra)
Secretary, CBDT