Waiver or of abandonment of government revenues. - Income Tax - 223/CBDT

INSTRUCTION NO. 223/CBDT Dated: September 29, 1970 Section(s) Referred: 222 ,87 Statute: Income - Tax Act, 1961 The question of how to deal with the cost incurred in the process of executing recovery certificates in cases in which the assessees have already made the payments was under consideration of the board for some time past. The board has been advised by the Ministry of law that when a certificate has been wrongly issued. It means that the central government is claiming certain money from a party to which it is not legally entitled to. The cancellation of the certificate or its non-enforcement would not result in government foregoing any amount which is otherwise due to it, for admittedly no money is due to the government from the party. Consequently this cannot be said to be a case of waiver or of abandonment of government revenues for that necessarily implies that Government has a claim. It is therefore open to the TROs to amend their earlier notices under rule 2 by invoking the provisions of rule 87 of the 2nd schedule to the I.T.Act. The board has decided that the above procedure may be followed in all cases where the certificate costs do not exceed Rs.10 in each case.