Recovery of tax - collection of cash - Income Tax - 627/CBDT

INSTRUCTION NO. 627/CBDT Dated : October 17, 1973 Section(s) Referred: 37 , Rule 6B of IT Rules Statute: Income - Tax Act, 1961 In accordance with the orders contained in Board's Instruction No.315 (F.NO.16/281/69-ITCC), dated 25th July,1971, the TROs and the Inspectors attached to them have been empowered to collect cash from individual defaulters while effecting recovery of tax in the circumstances referred to in Rules 22, 47, 60(1) and 73 of the 2nd Schedule to the I.T.Act,1961. 2. It has been brought to the notice of the Board that in a large number of cases the costs incurred in recovering the taxes under Rule 5 of the 2nd schedule to the I.T.Act,1961, do not exceed Rs.5 and that much difficulties are being faced by the assessees in depositing this small amount in the Treasury. Many of the certificate proceedings cannot be closed till the collection expenses are recovered, even though the tax mentioned in the recovery certificate has been recovered. 3. The Board has accordingly decided that the TROs and the Inspectors attached to them may collect the costs incurred in recovering the arrears from the defaulters in cash under Rule 5 of the 2nd schedule to the I.T.Act,1961. The procedure outlines in Instructions No.315 for handling the cash so collected must be scrupulously followed while collecting cash under Rule 5 ibid, as well. 4. These Instructions may please be brought to the notice of all officers working in each charge.