Reduction of Tax Arrears — procedure for giving Credit where the 'Original' Foil of the Receipted Challan
is Missing— Reg,

Instruction No. 1374. F. No. (14)/79-IT (B), dated 9-1-1981 from CBDT Vol. XXVI No. 4 Page 246

The relaxed and simplified procedure for giving credit to a tax payer in a case where either the 'Original' foil of the receipted challan is not on the file is given in the Annex.

Every ITO will, exercise a strict control over the entry of the challans in the respective Daily Collection Registers/Demand and Collection Registers and their placement on the miscellaneous file of the concerned tax payer for the relevant assessment year regularly so as to keep the number of missing challans to the barest minimum. The Tax payment Verification Register (TVR) prescribed vide, Appendix I to the Annex should be made available to the Revenue Audit party for the purpose of checking. The IAC will also test check the entries in the said Register at the time of vigilance/regular inspection.

The present procedure requires verification from the entry in the Receipted Scroll of the concerned bank's branch. Hence such scrolls should be carefully preserved in the CTUs/LTUs. They may be got bound, date wise and bank wise together with the covering scrolls of the link branches of the banks concerned.

ANNEXURE

Procedure for giving credit to a tax-payer in respect of payment of direct tax where the Original'
foil ofthe receipted challan is not available

(see para 3 of the instruction.)

Step I.— Getting a certificate copy of the assessee's foil of the challan and entry in a separate Register.

(i)(a) Where a challan has only 3 foils such as for regular assessment tax or tax deducted at source, the taxpayer should be requested to furnish a true copy of the foil of the receipted challan duly certified by him to be so. He should also certify that the credit for the amount has not been taken against demand relating to another assessment year. The taxpayer will be required to produce his foil of the challan before the Income-tax Officer who will countersign the true copy in token of his verification. The certified true-copy will be filed on the miscellaneous folder of the relevant year .The assessee's foil of the challan will be returned to him. (Where the payment involved exceeds Rs. 1,000, the IACC, will, instead of the ITO, countersign the true copy of the challan).

        (b) Where the challan has 4 foils like in the case of advance tax or self-assessment tax (including self assessment under the Wealth-tax Act, the certified copy of the challan need not be obtained from the taxpayer as the foil of the receipted challan enclosed with the return of income/wealth would, itself, serve the purpose of the certified copy.

 (ii)  An entry in the special register being maintained in pursuance of para 3 of the Board's Instruction No. 28 (F. No. 3/27/68-IT(B), dated 31st March, 1979) to be known hereafter as the Tax-payment Verification Register (TVR) should be made. The proforma of the TVR has been slightly amended and the amended proforma is given in Appendix I to this Annex and may please be brought into use immediately.

Step II—Verification of payment and entry on the Order Sheet.

   A.  Payments made before the introduction of the scheme of acceptance of direct taxes by public sector banks in addition to the Reserve Bank of India and State Bank of India.

  (i)  On the basis of the certified copy of the challan, or the foil of the receipted challan available with the return, the payment should be verified from the Daily Collection Register. Entries in the Daily Collection Register should not, however, be taken as conclusive unless there is record therein of reconciliation of the totals of the Daily Collection Register with the Treasury figures. If such a reconciliation is not forthcoming, a reference should be made to the Treasury Officer concerned for certifying payment.

 (ii)  The following noting should be made by the Income-tax Officer in the order sheet under his signature.

"Certified true copy/receipted foil of challan dated                         for Rs            ...is placed/available on file. This challan is entered at Sr. No                                                             in the daily collection register for month…………in the year                                                              ITO".

Score out inapplicable.

(iii)  In case the taxpayer has made the payment into the Treasury of another district, the verification of the entry should be got made from the Daily Collection Register of the ITO corresponding to the Treasury where such payment has been made. Receipt of the confirmation from the ITO about the entry being available in his Daily Collection Register and the totals of the said register having been reconciled with the Treasury figures, the credit for the payment should be given.

  B.  Payments made after the introduction of the schedule of acceptance of direct taxes by public sector banks in addition to the Reserve Bank of India and State Bank of India.

  (i)   A letter as per performa given in Appendix II to this Annex should be sent in duplicate to the Designated Officer (DO) i.e. the Income-tax Officer in charge of the Central Treasury Unit (CTU) or the Local Treasury Unit (LTU) concerned for certification of the payment from the Receipts Scroll of the branch of the bank where the payment was made by the taxpayer.

 (ii)  An entry should be made on the order sheet of the miscellaneous folder for the relevant year to the following effect: -

"Certified that true copy/receipted foil of the challan date…………………………………….for Rs………………………………………. is placed/available on file.

Entered at SI. No                      of the T.V                          write to D.O. of CTU/LTU*

Score out inapplicable.

A rubber stamp may be used.

(iii)  On receipt of the letter (in duplicate) every effort should be made by the D.G. to trace out the 'Original' foil of the missing challan from the bundles of Suspense Account challans. If the missing challan is traced out, the same should be sent to the Income-tax Officer along with one copy of the communication duly signed by the D.O. at the appropraite place. Suitable entries should be made in the accounting Registers maintained in the CTU/LTU. If, for any reason, the missing challan is not traced out, the certificate given on the letter should be filled in. It should be signed by the D.O. after personally verifying the payment from the Receipt Scroll of the branch of the bank concerned. The letter will be returned to the Income-tax Officer within 3 days of its receipt by the D.O. either with the 'Original' foil of the relevant challan or with the certificate of verification duly signed. A running serial number for each financial year will be given on the certificate by the D.O. on both copies of the letter received from the I.T.O. The running serial number may be given for each authorised public sector bank with the abbreviation of the name of the bank added to the serial number (i.e. SBI/I/78-79 to show that it is the first letter disposed of by the D.O. during the financial year 1978-79) in respect of a challan pertaining to the State Bank of India.

(iv)  On receipt of a copy of such communication from the D.O. the ITO will place the same on the miscellaneous folder of the relevant assessment year and complete the remaining columns of the T.V.R. The following entry on the order sheet will be made:

Original challan/certificate of payment of Rs                             received from D.O. and placed on file. Entry in TVR completed. Credit given to the assessee.

 Score out inapplicable.

A rubber stamp may be used.

 (v)  There are few placed in the country where the Treasuries have been authorised to accept the payments even after 31-3-1977. In such cases original foil of the receipted challan is not available, the payment may please be got verified from the Treasury Officer concerned on the basis of the entry in his copy of the scroll.

APPENDIX I TO ANNEXURE

Proforma of the Tax-Payment Verification Register (TVR)

   1.  Name of the assessee
 
   2-  PA No.
 
   3.  Assessment year
 
   4.  Nature of payment
 
   5.  Date of payment
 
   6.  Name of the Bank's branch and place where the payment was made
 
   7.  Amount (Rs.)
 
   8.  In respect of payments requiring verification from the DCR/Treasury Officer:
 
  (a)  Item number of DCR against which payment recorded
 
 (b)  Whether reconciliation of the total of the DCR (in which the item mentioned in Col 8 (a) included) with the treasury figures carried out.
 
  (c)  If answer against item 8(b) is 'No', number and date of reference made to Treasury Officer.
 
 (d)  Number and date of Treasury Officers' verification record.
 
   9.  In respect of payment requiring verification , from the bank scroll/treasury scroll:—
 
  (a)  Date of reference to Designated Officer (DO)/T.O.
 
 (b)  Number and date of reply from D.O./T.O.
 
 10.  Sr. Number of the Demand and Collection Register and year in which credit given.
 
  11  .Dated initials of the I.T.O.
 

APPENDIX II TO ANNEXURE

Office of the Income-tax Officer

Ward/District                    

Dated

To be sent in duplicate

to the Designated

Officer of CTU/LTU

Verification of tax payment and supported by 'Original' foil of the receipt challan.

The particulars of payment of I.T./C.T./W.T./*G.T./Interest Tax/E.D. claimed to have been made by the following assessee are given below: —

  (i)  Name of the Assessee

 (ii)  PA No.

(iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Assessment year

(iv)  Nature of payment i.e.

        Advance tax, Self-Assessment Tax,

        TDS or Regular assessment tax

 (v)  Date of payment

(vi)  Name of the bank's branch and place where the payment was made

(vii) Amount :

  (a)  figures (Rs.)

 (b)  Words (Rupees)

2. The 'Original' foil of the receipted challan may please be traced out at your end. If it is not located, the particulars in items (i), (vi) and (vii) may please be verified from the Receipt Scroll of the branch of the bank indicated in item (vi) above and one copy of this communication may please be returned to me with the following certificate duly signed by you.

Income-tax Officer.

To

        The Designated Officer,

        CTU/LTU

Certificate of the Designated Officer; SI. No                               19

* (To be furnished to the ITO within 3 days of the receipt of this letter)

*(1) The 'Original' foil of the challan in respect of the above payment has been traced out and is enclosed.

*Score out inapplicable.

*(2) In spite of every effort 'Original,' foil of the receipted challan could not be traced out. It is, however, certified that the particulars of payment mentioned in items (i), (iv), (v) and (vii) of para 1 above have been personally verified by me. The payment mentioned in item (vii) figures at Sr. No………….in the Receipt Scroll No………………..dated…………..of the bank mentioned in item (vi) above.

(                  )@

Designated Officer

CTU/LTU

Reduction of Tax Arrears — Procedure for giving Credit where 'Original Foil' of Receipted Challan
is Missing — Relaxation of

The Board have made the following relaxation and modification in the existing procedure prescribed in Instruction No. 1125 in the procedure for giving credit where original foil of the receipt challan is missing: —

  (i)  In Step I (i) (a) of the annex to Board's Instruction No. 1225 referred to in para 1 above, a certified true copy is required to be made from the assessee's foil of the challan which has to be countersigned by the IAC if the payment involved exceeds Rs. 1,000, irrespective of when the payment was made. The limit of the countersignatures of IAC has been raised to 10,000. Henceforth if the payment does not exceed Rs. 10,000 ITO will himself countersign the certified copy of the challan.

 (ii)  In respect of the payments made before the coming into force of the new scheme of tax payments, the present procedure required, vide Step II-A of the annex to Board's instruction No. 1225. that the payment should be verified from the Daily Collection Register which would be taken as conclusive proof if there is a record therein of reconciliation of totals of Daily Collection Register and the Treasury figures. It further provides that in the absence of reconciliation a reference should be made to the Treasury Officer for certifying the payment. It has been decided that where these, requirements are not forthcoming, credit should be given to the taxpayer in the following manner: —

  (a)  A certified true copy should be obtained from the tax-payer and counter signed in the manner described in Step I(i)(a) as modified in para (1) above. If the assessee's copy is not forthcoming, a certified copy of the provisional receipt given in acceptance of the cheque tendered at the (former) Cheque Receipt Counters of the Department should be obtained and got countersigned.

 (b)  There should be some evidence in the departmental records to prove the receipt of tax such as entry in the Daily Collection Register, even though the total is not reconciled, entry in the Cheque Receipt Register and the cheque having been sent for encashment and not received back un- collected etc.

  (c)  In such cases i.e. where DCR totals are not reconciled with Treasury, or " a certificate from Treasury Officer/Receiving Bank is not forthcoming, the powers of the various authorities for giving credit would be regulated in the following manner: —

  (i)  ITO Rs. 500 per challan subject to a maximum of Rs. 2,500 per assessee.

 (ii)  IAC upto Rs. 2,000 per challan subject to a maximum of Rs. 10,000 per asessee.

(iii)  CIT Rs. 10,000 per challan subject to a maximum of Rs. 50,000 per assessee.

(iv)  Zonal Committee consisting of 3 Cs IT on the pattern of the "Write off" Commmittee.
 
Upto Rs. 50,000 per challan subject , to a maximum of Rs. 25 lakhs per assessee.
 (v)  CBDT on the recommendations of the Zonal Committee.
 
Beyond Rs. 50,000 per challan and/or Rs. 2.5 lakhs per assessee.

(d) In such cases instead of the noting prescribed on the order sheet in Step II (a) (ii) of the annex, the following noting should be made:-

"Certified true copy of the receipted foil of challan/acknowledgement receipt of cheque dated…………..for Rs…………is placed/available on file. The payment is supported by…………..

(indicate nature of evidence) ITO"

(e) Other requirements like entry in the Tax Payment Verification Register (TVR), etc. remain unchanged.

There would still be some cases which cannot be covered under the procedure relaxed vide para 4(ii) above where payments were made before the new scheme of tax payments. It has been decided that in such cases you may kindly furnish to the Board the following details: —

 (1)  Name of the assessee.

 (2)  Amount of each payment challanwise.

 (3)  Date of payment.

 (4)  Brief description of the nature of evidence with the assessee and with the department.

These statements were to be sent to the Board by 28th February, 81.

[Instruction No. 1374. F. No. (14)/79-IT (B) , dated 9-1-1981 from CBDT Vol. XXVI No. 4 Page 246.]