Outstanding arrears - stay - Income Tax - 635/CBDT

INSTRUCTION NO. 635/CBDT Dated : November 12, 1973 It is seen from the periodical statements received from various charges that a fairly large portion of the arrears outstanding are in the form of demands pending decision of appeals. These demands unpaid either due to the unwillingness on the part of the assessees or on account of the failure of the departmental authorities in taking sufficiently effective measures to recover them. The Board desire that proper steps should be taken to tackle this problem. 2. CsIT/Addl.CsIT should grant stay of recovery in those cases where demands are attributable to substantial points of dispute. Other cases should be reviewed and directions given to the ITO/TRO to collect the demands even though appeals are pending, unless there are extenuating circumstances. The intention is that as much of the demand as is genuinely disputed should be covered by stay. Demands which do not fall into this category should be collected as far as possible.