Restrictions on registration of transfers of immovable property in certain cases. - Income Tax - 243/CBDT

INSTRUCTION NO. 243/CBDT Dated: December 3, 1970 Section(s) Referred: 230A Statute: Income - Tax Act, 1961 Some cases have come to the notice of the board where the assessee who anticipating that heavy demands of tax may be raised in their pending assessments, alienated their immovable assets before these assessments could be completed and the demands could be actually raised. The ITCC under section 230 A of I.T.Act could not be withheld in such cases, in the absence of any existing liabilities under the income-tax and other direct taxes on the date of filing the application under rule 44A of the Income-tax rules 1962 either on the basis of assessments completed or the returns already filed. Consequently when the demands were actually created on completion of the then pending assessments the recovery could not be enforced as no assets were available. 2. The board desire that to avoid any possible loss of revenue where an application u/s.230 A of the I.T.Act has been made the ITO should unless he has reason to believe that the application has not been filed with the intention to defeat subsequent recovery of tax by alienating immovable assets before the demand in the pending assessments is created which may for instance be so in a case where information is available on the records to show that even after the transfer of the property for which the certificate has been sought the assessee will be left with sufficient assets for payment of demands that may arise later or unless in cases requiring detailed investigation there are difficulties in completing the assessments expeditiously first take immediate steps to complete all the pending assessments well before the time-limit of 60 days from the date of the filing of the application by the assessee and raise the demand. The certificate may then be issued after the assessee has paid or made satisfactory provision for the payment of the then existing demand. 3. These instructions may please be brought to the notice of all the officers in your charge.