Consolidation of share capital requires court confirmation as an arrangement before changes are reflected in company accounts.
Consolidation of equity and redeemable preference share capital and division of the consolidated capital into smaller denomination equity shares are not covered by the specified statutory clause and do not require the prescribed forms; instead, such a reorganisation is an arrangement that must be sanctioned by the court under section 391, and the change may be reflected in the balance sheet only after High Court confirmation, with any later increase in authorised capital effected thereafter.

Draft audit para reporting requires revised proforma and prompt verified reports to enable Board response to C&AG.
Instruction revises the proforma for Commissioners of Income-tax to report on draft audit paras proposed by the C&AG and requires Commissioners to verify facts carefully and submit the completed reports with utmost expedition, since the Board must communicate its acceptance or otherwise of audit objections within a short statutory period; the proforma report is the basis for all correspondence with the C&AG and the PAC.

Recordkeeping obligations: Income-tax officers must maintain appeal registers and provide handover notes to prevent administrative lapses.
The Board directs strict compliance with two administrative duties: maintain and complete the Register of Appeals (ITNS-61) with accurate entries on appellate receipts and disposals, and leave a brief handover note detailing disputed assessments when transferring charge or proceeding on leave; failures will attract serious disciplinary view.

Tax deduction certificate recordkeeping required to prevent loss and unnecessary duplicate filings; officers must ensure proper maintenance and compliance.
The Board directs Income tax Officers to improve maintenance and filing of tax deduction certificates to prevent loss and avoid repeated demands for duplicate certificates; Commissioners and Inspecting Assistant Commissioners must ensure strict compliance and circulate these instructions to all officers in the charge.

Timely service of demand notices mandated with monthly and quarterly D.C.R. scrutiny to prevent inordinate delays.
Timely issuance and service of demand notices and challans must be ensured by recording assessment order dates and service dates in the Demand and Collection Register (Col. 4 and Col. 27). Income-tax Officers are required to personally scrutinise D.C.R.s at month-end to confirm service for the preceding month; Range I.A.Cs to review D.C.R.s quarterly for local circles; I.A.Cs to verify D.C.R.s for mofussil charges on tour. The same procedure applies to notices of demand for advance tax and other direct tax demands.

Intelligence and investigation division required at Commissioner level; Commissioner (Central) controls case transfers and major-city investigations.
A dedicated intelligence and investigation division is to be established at the Commissioner level, with investigative work in major cities assigned to the Commissioner (Central); the Commissioner (Central)'s view shall prevail on transfer or retransfer of cases to Central Circles, and the Commissioner concerned will be the senior Commissioner between the territorial Commissioner and the Commissioner (Central).

Determination of consideration by government or central bank excludes use of acquisition provisions for such transfers.
Where the Central Government or the Reserve Bank of India determines or approves the consideration for a transfer, that consideration is treated as market value, and Chapter XXA acquisition provisions need not be applied to transfers to the Government or to transfers whose full consideration has been so determined or approved.

Prohibition on deduction for gratuity provisions allows conditional relief if an approved irrevocable gratuity fund is established and funded.
Section 40A(7) bars deduction for mere provisions for gratuity while preserving deductions for contributions to approved gratuity funds and actual gratuity payments. For assessment years 1973 74 to 1975 76 a saving allows deduction up to the admissible amount where the provision is based on an actual valuation, an irrevocable trust gratuity fund is created and approval sought, and at least half the admissible amount is paid into the fund within the prescribed time; remaining rules govern prior payments, disallowance if conditions unmet, reassessment/rectification, instalment payments with interest, and waiver of penalties/interest for reliance on prior Board guidance.

Failure to provide for taxation and proposed dividends constitutes not showing a true and fair view in company accounts.
Omission to provide for taxation and for proposed dividends in company accounts results in accounts that do not show a true and fair view of the state of affairs; the department affirms such omission undermines accuracy of the reported financial position.

Government approval for director employment contracts required upon modification or renewal under the proviso to section 297, with exceptions.
Contracts entered into before 1 2 1975 do not require approval under the proviso to sub section (1) of section 297, but any modification or renewal after the original period will require Central Government approval under that proviso; approval is necessary for all transactions within the proviso except those excluded by sub section (2) of section 297, and this applies to contracts of employment of a director as managing director in companies meeting the paid up capital threshold.

Income-tax verification procedure requires officers to confirm certificate utilisation and declaration of related income at next assessment.
Instruction mandates that applications for Income-tax Verification/Clearance Certificates be filed in miscellaneous files with order-sheet entries, and that at the next regular assessment the Income-tax Officer must verify utilisation of the certificates and declaration of income from licences or contracts; non-existing assessees must have files started and names entered in the Trial Register for follow-up.

Double taxation relief: unilateral relief under section 91 applies where dominion agreements ceased, affecting resident taxpayers' assessments.
The Income-tax (Double Taxation Relief) (Dominions) Rules, 1956 provide relief where income is taxed in India and specified Dominions, set refund rates and procedural safeguards, and remain operative under transitional law. Several former Dominions have notified that bilateral arrangements ceased on their dates of independence; consequently Indian residents with income in those countries are to be covered by unilateral relief under section 91 from the assessment year following each country's independence, while Sierra Leone has agreed to continue the 1956 arrangements.

Unilateral tax relief under section 91 applies to Indian residents for income from Aden after Aden's independence.
The Aden Double Taxation Relief Rules, 1953 were operative by virtue of transitional domestic law but the agreement underpinning them ceased to bind the successor state after its independence; consequently, Indian residents must claim relief for income from Aden under the domestic unilateral relief provision, applicable from the first assessment year following Aden's independence.

Advertisement validity under Companies (Acceptance of Deposits) Rules: remains through the financial year; prior profits and dividend disclosures required.
An advertisement for soliciting deposits issued during a company's financial year remains effective until the close of that financial year, allowing receipt of deposits through that period. Any such advertisement must disclose the company's profits and dividend figures for the financial years immediately preceding the date of the advertisement as required by the Rules.

Coal-fired equipment classification now covers producer gas-fired kilns and furnaces, extending development rebate eligibility accordingly.
Producer gas-fired kilns, furnaces and similar plant are to be regarded as coal-fired equipment because producer gas is produced by passing steam over burning coal; consequently, the statutory Explanation extending development rebate treatment to coal-fired equipment applies to producer gas-fired installations and they are eligible for the continuation of the development rebate under the Finance Act provision.

Tax clearance affidavit permitted when certificate unavailable, with official liquidator to verify with tax authorities if doubts arise.
If income tax or sales tax clearance certificates cannot be furnished but there are no other objections, the official liquidator may obtain an affidavit from the voluntary liquidator stating the company does not owe income tax or sales tax; if the official liquidator has doubts before submission of his report, he should refer the matter to the concerned tax authority or income tax officer to ascertain the position and decide the course of action.

Statutory auditor appointment: government controlled companies require appointment via designated authority on audit office advice.
Statutory auditors of government owned or controlled companies must be appointed or reappointed by the Company Law Board on the advice of the Comptroller and Auditor General; compliance with this requirement is the responsibility of the companies. Auditors proposed under the general appointment provision must confirm that the company lies outside the special statutory ambit before acceptance. Any appointment or reappointment made by the company under the general provision for a company within the special regime is void ab initio.

Deemed public company status: existing director tenure survives; future appointments and remuneration need Central Government approval.
Becoming a deemed public company under section 43A does not invalidate existing managing or whole time director appointments and Central Government approval is required only at the next appointment; indefinite appointments are treated as having a fixed tenure commencing on the date of deemed public status. If profits are inadequate, minimum remuneration requires prior Central Government approval applied for within a reasonable time. Excess loans, advances or guarantees must be recovered or withdrawn within a remedial period from the date of deemed public company status.

Dividend declaration limits: a company cannot declare an additional dividend after one has been declared for the same year.
A company may declare dividends at a general meeting other than the annual general meeting unless its articles prohibit it, but once a dividend has been validly declared at the annual general meeting it is beyond the powers of the company to declare a further dividend for that same year. Conversely, if a company could not declare a dividend at the annual general meeting it may do so at a subsequent general meeting; where a dividend has been declared at a general meeting neither the company nor its directors may declare an additional dividend for the same year.

Public company conversion: private companies crossing turnover threshold become public three months after the relevant period.
Companies whose three year relevant period meets the average annual turnover threshold are classified into three sub clauses under Explanation (a). If the third financial year of the relevant period ends on or after 31 10 1974 but not after 31 1 1975, conversion to a public company occurs three months after that third year end. If the first or second year of the relevant period ends on 1 2 1975, conversion occurs three months after the third year end. If the relevant period falls after 1 2 1975, conversion occurs three months after the third year end.