No. C5-85367/83/TX                                                                            Dated 7^th April 1987

CIRCULAR NO. 7/87

Sub:-  Sales Tax Advisory Committees Meeting held on 29^th August 1983-Implementation o0f decision Furnishing of bill-war statement-Instructions issued.

The representatives of dealers pointed out at the meeting of the Sales Tax Advisory committee held on 29^th August 1983 the difficulties experienced by dealers in furnishing bill war statement of all purchases of goods taxable at the first point of sale made by then during the whole year for claiming exemption from tax as a second seller.  Board examined this aspect in detail.  Here fore in the case of dealers of medicines companied large business unit etc.  When the purchase are voluminous insistences of the filling of the list of bill war purchases may be dispensed with if the assessing authorities are satisfied with the bill war purchases accounted in the ledger.

No.  H2-31676/87/TX                                             Office of the board of Revenue (Taxes)

                                                                                   Trivandrum-33

                                                                                  Dated 5^th July 1987.

CIRCULAR NO. 12/87/TX

Sub:  Audit of Receipt 1985-86 Omission and lapses pointed out in audit remedial measures to avoid recurrences relating to agricultural Income tax-Instruction issued.

In the various circulars cited suitable Instruction haven been issued to the assessing authorities to make adequate assessments avoiding omissions and lapses noticed at various level.  The controlling Officers have also been instructed to ensure that the assessing authorities are following the instructions scrupulously and also to issue suitable further instructions.  But in spite of all these instructions and warning the audit report for 1985-86 received shows that the assessing authorities and controlling officers have not adhered to the instructions and the same mistakes are repeated.  In the audit report for 2985-8 the following categories of mistakes are pointed out viz; omission to utilize informations available in the assessing office and to utilize informations furnished by the Intelligence wing of the department income escaping assessment incorrect renewal of registration of firms short levy due to incorrect appointment of income among sub partners failure to club income incorrect computation of income granting inadmissible deduction irregular allowance of deduction short levy due to non clubbing of income from individual and joint properties omission o revise assessment application of incorrect rate of tax non levy of tax due to delay in finalization of assessment non levy of penalty non production of records to audit for scrutiny and failure to settle outstanding audit objections

In the audit report it has been pointed out that local audit reports relating to 1973-74 onwards are pending settlement and as on 30^th September 1986 there are 384 reports with 2479 paras involving a money value of Rs. 899.64 lakhs.  It has also been specially pointed out that in the Agricultural Income Tax Office viz; Kumily, Hosdurg and Manantoddy 24 reports containing 304 paras having a money value of Rs. 70.98 lakhs are pending settlement for the last 14 years.  It is distressing to note the assessing authority have not furnished even the first replies which are due to the Accountant General.  Within 4 weeks from the date of receipt of report.  The audit has also pointed out that no action has been taken by the Agricultural Income Tax and Sales Tax Officer, Kumily on a short levy of Rs. 1,35,632 due to under valuation pointed out in April 1982.  So also in the Agricultural Income Tax Office, Hosdurg escapement of income with tax effect Rs. 58,608 pointed out in are requested to examine the entire outstanding audit reports and course that the deficits pointed out are settled fixing a time bound programme.  The Deputy commissioners Idukki and cannanore are requested to examine the cases pointed out in the agricultural Income Tax and Sales Tax Office Kumily and Hosdurg and to ensure that the defects are settled and final report forwarded within fortnight.  The officers responsible for the failure to furnish first replies in tine should be called upon to explain the lapses and suitable action is taken against them.  A detailed report in this regard should reach the Board before 31^st July 1987. 

In para 3.16 of audit report 1985-86b it has been pointed out that 1800 audit files in 48 officers were not made available to audit and out of this 1232 files involved 297.68 lakhs of rupees.  The reasons states that the files are not readily available are not convincing.  The officer should trace out all such files and make available to audit.  In this connection attention of all assessing authorities are drawn to the Boards Circulars No 2/87 dated 17^th January 1987 and requested to bear in mind that non-production of records for audit without sufficient reason is a serious lapses and disciplinary action will be taken against those involved.

The total number of defects pointed out in the audit for 1985-86 is 444 and the amount involved is 117.27 lakhs.  This shows that the assessing authorities are careless in finalizing assessment and in demanding tax legitimately due to government.  All Deputy commissioners and inspecting assistant commissioners are requested to analyze the cases pointed out in audit and ensure that such mistake are not repeated by the assessing authorities.  They are also requested to take disciplinary action in cases where major irregularities leading to requested to bear in mind that lapses due to carelessness will be dealt with severely and hence every effort should be made to avoid lapse and omissions and to demand tax legitimately due.

A few illustrated cases mentioned in the audit report 1985-86 are furnished below briefly for references and to guard against repetition of lapses.

para  3.2 - Omission to utilize information available in the assessing offices.

With a view to enabling the assessing authority to make proper assessment, the departmental procedures prescribed internal and external surveys on a regular basis for collecting necessary data, Internal surveys consists of gathering useful informations from records of the assessing offices, where as the eternal surveys consists of collection of necessary details from publication reports registers of other departments and inspection of agricultural holdings.  As regard sale, gift etc. of properties by an assessee the assessing authority shall straight away proceed to assess the income from such properties at the hands of the transferees if they are assessee and if no he assessing authority has to book trial cases, conduct necessary enquiries and to assess the transferees.  Under this category there are 38 cases.  The first one relates to the assessment of Agricultural Income Tax Officer Alwaye.  The point is that Rubber Estate held by two assessees were inspected by the Agricultural Income Tax Officer, Kozhikode and the inspection report was communicated to the Agricultural Income Tax Officer, Alwaye in September 1983.  But the Agricultural Income Tax Officer Alwaye failed to make use the data gathered ob inspection in the assessment for 1982-83 and 1983-84 and the same has resulted in a short levy of Rs. 1,44,845 in the second case an assessee of Agricultural Income Tax Officer, nedumangad sold 18 acres of rubber plantation to a society in may 1981.  Although the income from the rubber estate was excluded from the assessment of the seller the same has not been subjected to assessment at the hands of the purchaser and the same has resulted in short levy of Rs. 1,15,182 or 1982-83 and 1983-84.

In the 3^rd case in Kottayam the income derived by a family consisting of 13 members for he assessment of 1978-79 was assessed in March 1984 assigning the status tenants in common.  The share income was fixed at Rs. 5,176 and the assessment was recorded as a case of NIL demand. But out of the above 13 members 9 members have derived income of Rs. 12,598.70 each from another property held by them as tenants in common and that file was dealt with by Inspecting Assistant commissioner, Kottayam and the Inspecting Assistant Commissioner has also recorded the case as NIL demand.  Though the details of income derived by the 9 members from the second properties were available with Agricultural Income Tax Officer, Kottayam the same has not been clubbed and utilized for assessment purposes and the same has resulted in short levy pf Rs. 17,276.

The above lapses pointed out in audit shows that the assessing authorities are not following the instructions issued scrupulously.

Para  3.3 - Omission to utilize information furnished by the Intelligence Wing.

Cardamom growers sell their produce directly or through auctioners.  The Intelligence Wing of the Department collects the details of sales effected by growers from the auction sales statement of auctioneers in three cases ion the Agricultural Income Tax and sales Tax Office, Kattappana and six cases in the Agricultural Income Tax and Sales Tax Office, Kumily he assessing authority have failed to utilize the materials furnished by the Intelligence Wing and the same has resulted in short levy.  The audit objections are furnished in brief as under:

An assessee in the Agricultural Income Tax and Sales Tax Office Kattappana was holding 17.08 acres of cardamom estate.  While finalizing the assessment for 1979-80 the yield was estimated at 400.30 kgs.  On appeal the yield was reduced ton 319.01 kgs.  According to the auction sales details furnished by the intelligence wing the assessee has sold 418.70 kgs, including 159.60 sold and shown in the return filed by the assessee.

In the second case the assessing authority estimated the yield at 478.80 kgs, of cardamom from 14.39 acres held by the assessee.  According to the sales statement the assessee has hold 1345 kgs through auctioneers and the assessing authority has failed to utilize the materials.

In the 3^rd case the assessing authority has estimated the yield two assessees as 226.25 kgs. and 236.55kgs respectively for the year 1980-81.  But the auction sales details furnished by the Intelligence Wing disclosed that the assessees have sold 440.75 kgs and 608.55kgs.  This omission has resulted in short levy or Rs. 83.373.

In the Agricultural Income Tax and Sales Tax Office, Kumily an assessee has conceded 434.30 kgs, 457.30 kgs 482.10 kgs and 474.30 kgs for the years 19980-81, 1981-82, 1982-93 and 1983-84 respectively.  But the auction sales details furnished by the Intelligence Wing disclosed that the assessee has sold 1145.70 kgs 803.80 kgs 93.80kgsand 370.49 kgs in addition to the conceded quantity. But the assessing authority has estimated the yield at 539.53 kgs 553.95 kgs 503.42 kgs and 488.69 kgs for the years 1980-81, 1981-82, 1982-83 and 1983-84 respectively and the omission to utilize information has resulted a short levy of Rs. 2,44,167.

In the second case the assessment for 19890-81 was finalized estimating the yield at 760 kgs from 20.69 acres cardamom land held. But according to the auction sales details furnished the assessee has sold1432.20 kgs and the assessing authority has failed to utilize the materials resulting in a short levy of Rs. 59,683.

In the 3^rd case the assessing authority has finalized the assessment for 1980-81 in respect of 3 assessees estimating the yield at 148.20 kgs 108 kgs and 457.8 kgs.  But the auction sales details disclosed that the assessee have sold 911.40 kgs 598.80 kgs and 640.90 kgs through auctioners at Vandanmedu.  Failures utilize the materials has resulted in  a short levy of Rs. 1,21,272.

In the 4^th case the assessment for 1980-81 was finalized by the assessing authority accepting the yield of 255.10 kgs returned from 7.12 acres of cardamom land.  But the auction sales details disclosed that the assessee has sold 173.50 kgs in addition to the above and the failure to utilize the auction sales details have resulted in short levy of Rs. 11,896.

In the 5^th case the assessment for 1979-80 was finalized fixing the yield at 703.50 kgs. But another quantity of 218.70 kgs sold through auctioners and the details available in the assessment record were not considered for assessment resulting in short levy of Rs. 30, 994

In the sixth case the assessment for 1979-80 was finalized recording the case as Nil and fixing the yield at 173.60 kgs.  But according to the inspection report of the Intelligence Wing the yield that can be estimated in 863.8 kgs.  Non-utilization of the materials furnished has resulted in a short levy of Rs. 478.136.

In the earlier audit report also omissions to make use of the auction sale details ands other materials furnished by the Intelligence Wing of the Department have been pointed out and suitable instructions has been issued to make adequate assessment and to guard against omission lapses and short levy.  But the omissions pointed our now shows that the assessing authorizes are not adhering o the instructions.  The Deputy Commissioners and inspecting Assistant Commissioners are requested to ensure that such lapses are not repeated by the assessing authority in future.

Para 3.4.-  Income escaping assessment:

The audit ha pointed out 5 cases of omissions under this category.  The first case relates to a firm, an assessee on the rolls of Agricultural Income Tax Officer, Kozhikode consisting of 7 partners.  The partnership was reconstituted twice in July 1974 and again in May 1976 due to the retirement of two partners.  But renewal of registration was granted erroneously and assessments were completed for the years 1972-73 to 1978-79.  The share income due to the remaining 5 partners in respect of the years 1973-74 to 1976-77 was erroneously assessed and for 1974-75 to 1977-78and to the share income due for 3 partners for the year 1977-78 was assessed for 1978-79.  This has resulted in the short levy of Rs. 1,42,428.

In the second case four assessees in the Agricultural Income Tax Office, Kottayam leased out 91.40 acres of cardamom land to a firm for five years from July, 1973 on an annual rent of Rs. 52,200.  The lease rent was omitted two be assessed at the hands of the lessee for the years 1974-75 to 1978-79 and the same has resulted in short levy of Rs. 25,742.

In the 3^rd case the assessment of a firm with ten partners was finalized by the Agricultural Income Tax Office Alwaye for the year 1979- 80 estimating the yield of rubber at 36,797.50 kgs.  Out of the above the value of 26,276.50 kgs., rubber not supported buy bills was reckoned at Rs.7.50 per kg instead of taking the market rate of Rs. 9.50 per kg. The same has resulted in a short levy of Rs. 17,506.

In the 4^th case the assessment for the year 1978-79 was finalized by the Agricultural Income Tax and Sales Tax Officer, Kumily, assigning the status as tenants-in-common fixing the net income at Rs. 58,003 and subsequently refixed at Rs. 89,245.  But the assessments of the co owners were not revised accordingly.  This has resulted in a short levy of Rs. 15,722.

In the 5^th case an assessee company of the Agricultural Income Tax Officer, Trivandrum conceded properties at 11 places located in the various parts of the State during the previous year.  But while finalizing the assessment for 1984-85, though the details were available in the previous records the assessing authority omitted to consider the details from the entire properties and the same has resulted in short levy of Rs. 26,833.

Para3.5- Incorrect renewal of registration of a firm:

In the Agricultural income tax Office, Mananthody registration granted to an assessee firm in 1975-76 was renewed for each year 1976-77 to 1979-80.  But in the assessment for 1979-80 though the firm has filed application for renewal, it was not signed by one of the partners, the renewal was granted.  The firm ought to have been denied renewal of registration and assessed as unregistered firm.  The irregular grant of renewal of registration has resulted in a short levy of Rs. 88,981.

Para 3.6 -  Short levy due to incorrect apportionment of income of a firm among sib partners:

In the Agricultural Income Tax Office Kottarakkara the assessing authority has granted registration to firm consisting of 13 partners for the purpose of assessment of agriculture income derived and owned by the partners.  Subsequently to the registration one of the partners of the firm entered into a sub partnership with 3 outsiders with effect from July 1974 and with effect from July 1975.  Six partners of the firm constituted six separate partnerships with two/three outsiders in each sub partnership.  All the sub partnership were constituted mainly for the allocation of capital contribution and profit and losses of the concerned partners of the registered firm in the proportion specified in the sub partnership.  While finalizing the assessment of 1976-77 to each entered into sub partnership as mentioned above were not assessed to tax but apportioned among the sub partners.  This apportionment was not correct and the same has resulted a short levy of tax Rs. 1,50,985 for the years 1976-77 to 1978-79

Para 3.7 - Failure to club income:

In the Agricultural Income Tax Office, Pathanapuram, the assessing authority has assessed the share income of a partner (a lady) of a registered firm in which her husband is also a partner separately at her hand instead of clubbing it with that of her husband and the same has resulted is short levy of Rs. 26,814.

 In another case in the Agricultural Income Tax Office Kozhikode the assessment for 1979-80 was finalized clubbing the share income of his wife.  On appeal the assessment was remanded. But while revising the assessment in November 1984 the share income of husband and wife were assessed separately instead of clubbing both the income and the same has resulted in short levy of Rs. 14,095.

In the 3^rd case an assessee ‘A’ in the Agricultural Income Tax and Sales Tax Office Kumily gifted 4.25 acres of cardamom land each to two minor sons of his brother ‘B’ and assessee ‘B’ had gifted 4.41 acres of cardamom land to one minor and one major son of his brother ‘A’.  The assessing authority has accepted the transactions.  Acceptance of these transactions and exclusion of income from properties so transferred to the three minor children for the purpose of assessment in the hands of the transferrors resulted in short levy of Rs. 41.798.

Attention of all assessing authorise Inspecting Assistance Commissioners and Deputy Commissioners is drawn to Board’s Circular No 21/84 dated 29^th March 1985, wherein specific instructions have been issued based on earlier audit observations and to guard against recurrences.

In another case in the Agricultural Income Tax and Sales Tax Office Kumily an assessee transferred 8.675 acres of cardamom land to his minor son.  But the income derived was omitted to be clubbed with the income of the assessee for the purpose of assessment.

The irregularities pointed out shows that the assessing authorities are not following he instructions issued scrupulously.  The Deputy Commissioners and Inspecting Assistant Commissioners are requested to take severe Action against those responsible for such lapses in future.

Para 3.8- Incorrect computation of income:

In the Agricultural Income Tax Office Vythiri the assessment of an assessee for the year 1979-80 was finalized fixing the yield from cardamom at 4375 kgs and valuing the same at Rs. 150 per kgs less 25 per cent there off as expenses.  The net income was worked out at Rs. 1,64,063 instead if Rs.4, 92,188.  This mistake in computation resulted in an escapement at income Rs. 3,28,125 and consequent short levy of Rs. 1,96,875.

In another case in the Agricultural Income Tax and Sales Tax Office, Kumily the assessment for 1979-80 was completed based on an agricultural income of Rs. 61,379.  Subsequently it was noticed that over and above the income of Rs.61, 379 the assessee had another income of Rs. 1,79,241.  The assessment order was revised.   While revising the assessment the total income was taken as 2,40,620 ns the same has resulted in short levy of Rs. 26,546.  Similar mistakes have been pointed out in the earlier audit report, and circular instructions to guard against such lapses have also been issued.  But the present report shows that the assessing authorities are not following the instruction scrupulously.

Para. 3.9 - Grant of in admissible deductions:

The Inspecting Assistant Commissioner, Wayanad while finalizing the assessment of an assessee firm for the year 1980-81, has allowed deduction of Rs. 34,50 towards building repair charges.  The deduction allowed was incorrect and the same has resulted in short levy of Rs.17, 033.

Para 3.10.- Irregular allowance of deduction:

In the Agricultural Income Tax and sales Tax Office, Adimali the assessing authority has finalized the assessment of 1978-79 estimating the yield from 48.26 acres of cardamom land at 493.2 kgs.  But while finalizing the assessment for 1979-80 the assessing authority has reduced the yield by 25 per cent on account of ‘Azhukal’ disease even though no mention has been made about the ‘Azhukal’ disease in the inspection report.  The reduction allowed has resulted in a short levy of Rs. 11, 894 the for assessment year 1979-80.

Para. 3.11.- Short levy due to non clubbing of income from individual and joint properties.

The audit has pointed out five cases under this category

The first case deals with two assesses in the Agricultural Income Tax and Sales Tax Office, Kumily.  The assessing authority finalized the assessment for 978-79 and 1979-80 assessing the income from individual and joint properties separately.  As per provision of Agricultural Income Tax Act the individuals and joint properties should have been clubbed and assessed, together and subjected to tax.  Failure have been clubbed and assessed together and subjected to tax.  Failure to do so has resulted in short levy of Rs. 33.049 for 1978-79 and 1979-80

In the second case, the agricultural income tax and sales tax office Kumily while finalizing the assessment of an assessee for the years 1977-78 to 1982-83, 1/4^th share income (rs.55, 636) due to him from the properties of his father, who expired in March, 1976 was omitted to be taken into account and the same has resulted in  short levy of Rs. 29,590.

In the 3^rd case the Agricultural Income Tax and Sales Tax Office Vandanmedu on the demise of an assessee in October 1976 agricultural income from land held by the deceased was being apportioned equally between his wife and son and assessed in their hands.  But while finalizing the assessment of the son for 1984-85 the share income was erroneously reckoned as Rs. 12525 as against the correct amount of Rs. 412,125 and that the entire income was omitted to be assessed at the hands of the wife.  This has resulted into a short levy of Rs. 30.207.

In the 4th case an assessee on agricultural income tax and sales tax office vandanmedu has derived income from 14acres of cardamom land owned by her till 1978-79. In addition to the income the assessee was entitled to a share income arising from a property held jointly.  But it was noticed that her share income has not been clubbed with her income from own property and share income from joint property for 1977-78n was omitted to be assessed to tax.  These omissions have resulted in short levy of Rs.; 13,299.

In the 5^th case share income of Rs. 23,981 of an assessee in the Agricultural Income Tax and Sales Tax Office Kumily was omitted o be included in his total agricultural income for the year 1983-84 and his has resulted in short levy of Rs 12,681.

Para 3.12.-  Omission to revise the assessment:

In the Agricultural Income Tax Office, Kottayam while finalizing the assessment of an assessee for the year 1980-81 the income as computed at Rs. 1,42.273 as against the correct amount of Rs. 1,76,692.  The assessee himself. But no action was taken to revise the assessment resulting in a short levy of Rs.26. 503.

Para 3.13.- Application of incorrect rate of tax:

In the Agricultural income Tax Office, Vythiri the assessing authority while finalizing the assessment of a domestic company for 1979-80 levied tax on an income of Rs. 5,33,776 at 50 per cent instead of the correct rate of 60 percent.  This has resulted in a short levy of Rs. 53, 378

Para 3.14.- Non levy of tax due to delay in finalizing the assessment

In the Agricultural Income Tax and Sales Tax Office, Kattappana on the basis of information gathered from the sales tax file that an individual has purchased 16.21 acres of cardamom land in January 1974, the assessing authority issued a notice under section 35 for the assessment years 1975-76 to 1978-70.  Though pre assessment notice for 1975-76 was issued on 25thJune 1980 and again on 6^th October 1980 the assessment was not finalized before 31^st March 1981 and hence barred by limitation. This has resulted in a short levy of Rs. 19924.

Para 3.15.- Non levy of penalty.-

Under the Kerala Agricultural Income Tax Act 1950 every person who is liable to pay tax is required to furnish to the assessing authority before 1^st June of every year a return in the prescribed form.  Before submission of the return he is also required to pay the tax due on the agricultural income admitted in the return and to furnish proof of such payment along with the return.  If he fails to pay tax or any part thereof the assessing authority may direct that a sun of equal to 2 per cent of the tax shall be recovered from him by way of penalty for every month.  But in the agricultural income tax office, Palai  4 assessees have not paid the admitted tax before submission of return for 1982-83 to 1984-85 and the assessing authority has not imposed penalty.

No E5-45334/85/TX                                                                          dated 7^th August 1987.

CIRCULAR No. 14/87/TX

Sub:- Local Audit Report -Non production of cash receipt book for verification-Regarding.

For a proper check of the correctness of the receipts and disposal of the cash, it is absolutely necessary that the counterfoils are verified by the audit and inspecting officers.  It is the responsibility of the person in charge of the cash book to keep in safe custody the counterfoil of the cash receipts books a particular person hands over charges of his section to others, the counterfoils of the cash receipt books should also be handed over on proper acknowledgement so that responsibility for the mission of the books if any can be located.

E3-48073/85/TX                                                                            Dated, 14^th October 1987

CIRCULAR NO. 20/87

Sub:-  Audit by the Accountant General-Necessity furnishing correct replies to audit enquiries and full and latest information in rectification reports-instructions issued.

An instance has come to the notice of the Board of revenue here the Accountant General’s audit indicated that a amount of escapement of tax was elected by it whereas the department claimed that the escapement was detected by the assessing officer himself and remedial action taken long before the commencement of the audit.  From the nature of the preliminary reply to the audit enquiry note given to the audit party during he course of audit the rectification report subsequently sent on receipt of the local audit report and subsequent verification of the assessment order the audit staff of the accountant general came to the conclusion that the assessment has been revised before the audit pointed out the error.  The whole confusion arose on account of the fact that replies to audit enquiries and rectification reports were furnished by the assessing officer without scrutinizing the entire assessment files thoroughly before furnishing the replies.

It is therefore highly necessary that the assessing officers ensure that the latest stage of action as obtaining on the date of audit it indicated in the replies to audit enquiries so that the audit may not be misguided and led to raise objections where proper action had already been taken by the department

No. C1-72618/87/TX                                                                            19^th December 1987

CIRCULAR NO. 26/87/TX

Sub:-  Taxes-sales tax proper and timely distribution o check post declarations-utilization of check post declarations for purpose of assessments instructions issued.

Ref:-  Board’s Circular No 3/86/TX dated  6^th January 1986.

The attention of the sales tax inspectors in charge of check posts is invited to the Board’s circular cited.  As per the instructions issued the duty inspectors should keep all the declarations received during the period of their duty in a sealed cover and hand over the same to the next Inspectors who takes charge of the check posts.  The inspecting assistant commissioners having jurisdiction over the check posts should collect such sealed covers and distribute the declarations to the concerned assessing authorities.

No. C1-19919/88/TX                                                                             dated, 6^th June 1988

CIRCULAR NO. 5/88

Sub:- Kerala General Sales Tax Act, 1963-simplified method of assessment under section 17(4) instructions issued.

Ref:-  1.  Board’s circular no C1-21855/78/TX  (2) dated 5^th May 1978 and proceedings of even number and date.

2.  Kerala Finance Bill, 1988 (72 of 88)

The attention of all officers is invited to the references cited.  Copy of Boards Circular cited first is enclosed for ready reference.  As per Kerala Finance Bill 1988, the turnover limit for the simplified method of assessment provided in section 17 (4) is enhanced to rupees three lakhs from rupees two lakhs.  The benefit of simplified method of assessment should be extended to all the eligible dealers, subject to the condition prescribed in the statue.  While completing no harassment or hardship is caused go the genuine dealers.

One of the objectives of the simplified procedure for assessment is to ensure that the department in able to find more time on the bigger cases ands this should be borne in mind when dealing with the cases to be dealt with under the simplified procedure or assessment

FA- 70947/87/TX                                                                                 Dated 30^th June 1988

CIRCULAR No. 7/88

Sub:  Taxes-Co-ordination of State Sales Tax Central Income Tax and Central Excise Departments-Regarding.

The Deputy Commissioner (Intelligence) should meet the Collector of Customs and Central Excise and the Commissioner of Income Tax in the State level and the Inspecting Assistant Commissioner (Intelligence) should meet the Officers of the above departments at District level at regular intervals and they may arrange for coordinated action between the departmental Officers.

The information date so collected may be passed on to the assessing authorities concerned through the District Deputy commissioners and the assessing authorise in turn can make use of the details for assessment purpose, so that any evasion of sal