Arrears of Tax - Non recovery of sur tax - Income Tax - 560/CBDT

INSTRUCTION NO. 560/CBDT Dated : June 22, 1973 The mounting arrears of surtax have been causing concern to the Board. The aggregate arrear demand of surtax as on 28th February, 1973 amounted to Rs.958.22 lakhs as against Rs.450.77 lakhs as on 31st March, 1972. Non-recovery of arrears of sur-tax from companies who have a high rate of profitability is also likely to draw adverse comment from the Public Accounts Committee. 2. With a view to tackle the problem of increasing arrears, the Board has decided that the following measures should be taken immediately: (i) All pending rectification, revision and adjustment must be attended to on a priority basis. Undisputed demand should be collected within a month's time; (ii) List of cases in which the demand is locked up due to pendency of appeals may be prepared and a request may be made for their hearings out of turn. The Commissioners of Income-tax will review the position of such cases every month; (iii) Details of cases having outstanding surtax demand may be furnished as per proforma given in Annexure 'A' to the Directorate of Inspection (Research, Statistics and Publication). These statements may be sent every quarter so as to reach the Director of Inspection by 15th July, 15th October, 15th January and 15th April; (iv) In order to exercise proper effective control over outstanding arrears in bigger cases, the Board has devised a statement (Annexure 'B' ) to be prepared in cases where the demand exceeds Rs.50,000. These statements may be obtained from the Income-tax Officers by the Commissioner of Income-tax on 15th July, 15th October, 15th January and 15th April. Commissioners will please have them scrutinised and issue instructions to the Income-tax Officers wherever found necessary. (v) A consolidated report in (Annexure 'C') of cases of demand over Rs.50,000 may be submitted to the Board by 1st May, every year. For the current assessment year, report may be submitted by 1st August, 1973. 3. Necessary instructions may please be issued to the Income Tax Officers on the lines indicated above.