The amount written off in these cases should be shown in a separate part of the D & CR. - Income Tax - 199/CBDT

INSTRUCTION NO 199/CBDT, Dated: August 3, 1970 It has been observed by the Board that some Commissioners are sending cases involving partial write-off of less than 90% to the Board through the D.I.(RS P) although according to the existing instructions irrecoverable demands in such cases cannot be written off. In this connection attention of the Commissioners is invited to the then Secretary, C.B.D.T., Shri Wasiq Ali Khan's D.O. letter No.16C/54/63-ITB dated the 30th December, 1964 (copy enclosed) according to which partial write-off can be sanctioned only in such cases where 90% of the demand is definitely irrecoverable. It is, therefore, requested that in future only such cases of partial write-off should be sent to the D.I.(RS P) as are covered by the existing instructions of the Board. 2. So far as the cases already recommended by the Zonal Committees for partial write-off and which are not covered by the existing instructions of the Board are concerned, the same are being returned to the respective Commissioners by the Board/D.I.(RS P) for taking effective measures for the recovery of the outstanding dues from the available assets. It is requested that further steps may be taken for recovery in these cases and it is only after all avenues of recovery have been exhausted and the irrecoverable demand comes to 90% or more that these cases may be processed and again placed before the Zonal Committees for recommending the write-off. Receipt of this letter may kindly be acknowledged. COPY OF D.O.F.NO.16C/54/63-ITB DATED 30-12-64 FROM Shri WASIQ ALI KHAN, SECRETARY, C.B.D.T. Will you kindly refer to Shri Sundra Rajan's secret D.O.letter No.16C/9/56-IT dated 31-1-57 indicating the procedure to be followed for the write-off arrear demands? 2. It was suggested by several CsIT that in cases where there was no chance of recovery more than 10% of the outstanding demands, the demand relating to one or more assessment years which would be equal to the amount likely to be recovered should alone be retained on the registers and the balance of the demand should be written of as irrecoverable. 3. The matter has been carefully considered by the Board and it has now been decided to sanction partial write-off in cases where 90% of the demand is definitely irrecoverable. The procedure that would be followed in this regard would be the same as the procedure laid down for complete write off in the D.O.letter referred to in para 1 above. In other words where the arrear demands outstanding in a particular case are less Rs.1 lakh the Commissioner or the Inspecting Asstt.Commissioner concerned as the case may be, can sanction the partial write-off. Where the arrear demands in a particular case are in excess of Rs.1 lakh, the proposal is to be first screened by the Special Committee and thereafter it will be considered by the Board. In short, the powers of write-off should be governed by the total amount outstanding against an assessee and not by the amount sought to be written off. The amount written off in these cases should be shown in a separate part of the D CR.