Asssessing officer may treat the assessee as not in default as long as appeal u/s 246 remains undisposed. - Income Tax - 216/CBDT

INSTRUCTION NO. 216/CBDT Dated: September 14, 1970 Section(s) Referred: 220(6) Statute: Income - Tax Act, 1961 U/s.220(6) of the I.T.Act when an assessee has presented an appeal before the AAC u/s.246 the ITO may in his discretion treat the assessee as not being in default in respect of the amount in dispute in appeal during the period of the pendency of the appeal. The board would like to emphasise that the discretionary powers given by sec.220(6) are to be expressed in respect of disputed taxes only. Similarly the instructions contained in the boards letter F.NO.1/6/69-ITCC dated the 21st August 1969 also refer to disputed demands only. 2. The board desire that all possible steps should be taken for the recovery of undisputed taxes by the ITOs and the assessees should not be allowed to withhold payment of the undisputed demand merely because they have filed appeals before the AACs. While reveiwing the arrears of taxes, the CsIT/IACs should ensure that these instructions are being scrupulously followed by the ITOs.