Adjustment of dues to assessee with arrears - Income Tax - 624/CBDT

INSTRUCTION NO. 624/CBDT Dated : September 28, 1973 Section(s) Referred: 245 Statute: Income - Tax Act, 1961 The Board have been given to understand that where IT, WT, GT are due from an assessee and the assessee pays the tax dues in instalments, the payments are quite often being adjusted towards income-tax arrears. Such a course leads to accumulation of arrears of WT GT and gives a very distorted picture of realisations of direct taxes other than I.T. 2. The Board have, therefore, decided that where there are arrears of IT, WT GT against an assessee and payments are made in instalments, the payments should in the absence of any specific request in this regard from the assessee and as far as possible be first adjusted against wealth-tax and gift tax dues and then only against income-tax dues. These instructions may be brought to the notice of all the ITOs on collection duty for careful compliance.