Quarterly review of work of ITOs. - Income Tax - 203/CBDT

INSTRUCTION NO 203/CBDT, Dated: August 11, 1970 The Board have viewed with great concern the mounting arrears of Income-tax. A recent review of the Quarterly Statement of arrear Demand, Current Demand, Collection and Balance for the quarter ending 30th March, 1970, has shown that the gross demand outstanding stood at Rs.840.70 crores as against the corresponding figure of Rs.774.40 crores for the preceding year. This is in spite of the fact that during the financial year 1969-70, the CsIT were asked to accord high priority to the problem of liquidation of arrears of taxes. With a view to ensuring that not only the upward trend of the arrears of taxes is arrested but some substantial results are achieved in reducing the arrears of taxes, the Government have recently sanctioned 60 posts of ITOs with corresponding staff for the purpose. Separate orders are being issued allocating these posts amongst the various CsIT. The Board would, however, like to impress upon all the CsIT and Additional CsIT(Recovery) that these posts of ITOs have been specially sanctioned for the purpose of reducing the arrears of taxes and as such these ITOs should be used only for this purpose and in no case be asked to perform assessment or other non-assessment functions. 2. In the cities of Bombay and Calcutta these ITOs may be posted as ITOs (Collection) in the functional ranges in addition to the existing Income Tax Officers(Collection) depending upon the position of taxes in such ranges. even in non-functional Ranges where the arrears of taxes are heavy these ITOs may be posted as ITOs (Collection) and may be assigned the necessary statutory powers. In other Commissioner's charges the Commissioners may, in their discretion, post such ITOs as ITOs(Collection) for one or two Inspecting assistant Commissioners Ranges where the problem of tax arrears is most acute. These ITOs may be given statutory powers of collections under the Act so that they can function independently and be made responsible for the results achieved by them. 3. The ITOs who have been specifically earmarked for the work of reduction of arrears of taxes, would have to ensure that the cash collections out of the arrear demand are stepped up and arrears of taxes are effectively reduced by (i) giving effect to appellate orders, (b) carrying out rectifications, (c) expediting adjustments of advance tax under the head "ITI Corporation Tax" and (d) verifying the payments of taxes made by the assessees where the challans are not readily forthcoming on records. 4. The Board would review the progress of the work of these ITOs every quarter commencing from the quarter ending 31st December, 1970 and it will be the responsibility of the CsIT/Addl.CsIT(Recovery) to send progress report in the enclosed proforma to the Board by the 25th of each month following the quarter under review. 5. The receipt of this letter may please be acknowledged. PROFORMA Progress Report of the ITOs(Collection) engaged on the work of reduction of arrears of taxes. 1. Commissioner's Charge : 2. Number of ITOs engaged on the : work of reduction of arrears of taxes. 3.(a) Arrears of taxes at the : begining of the quarter (b) Cash collections made : during the quarter (c) Reduction in arrears on : account of appeal effects, adjustments, rectifications etc. (d) Balance demand at the end : of the quarter. 4.(a) Percentage of 3(b) with : reference to item 3(a) (b) Percentage of items 3(b) : (c) with reference to item 3(a) Signature________________________ Commissioner of Income-tax/Additional Commissioner of Income-tax(Recovery) Place:_______________________ Date :_______________________