Refund including stay of demands. - Income Tax - 259/CBDT

INSTRUCTION NO. 259/CBDT Dated: November 20, 1970 Section(s) Referred: 271(1)(c) Statute: Income - Tax Act, 1961 According to boards Instruction No.160 dated 18th April,1970 and Notification No.87 dated 29th May,1970 the Additional Commissioners of Income-tax(Recovery) have been assigned all the functions of the CsIT under the I.T.Act in connection with the recovery of taxes including stay of demands, withholding of refunds u/s.241 and the work of Tax Recovery Commissioners. It has been further stated in Instruction No.160 dated 18th April,1970 that the responsibility for appropriate action in cases of tax arrears between Rs.1 lakh and 5 lakhs will be that of the Addl.CIT(Recovery). Doubts have been raised by some CsIT/Addl.CIT as to whether the cases with arrears exceeding Rs.lakh would be dealt with by the respective CsIT as in the past and whether the addl.CIT (Recovery) will deal only with cases of certificated demands. 2. It was stated in Instruction No.160 dated 18-4-70 that the responsibility for appropriate action in cases of tax arrears between Rs.1 lakh and Rs.5 lakhs will be that of Addl.CIT(Recovery) as the responsibility for appropriate action in cases of arrear demands exceeding Rs.5 lakhs but below Rs.25 lakhs has been specifically assigned to the Director of Inspection. The board have themselves assumed the responsibility for watching the liquidation of arrears in all cases of arrear demands above Rs.25 lakhs. In this connection reference is invited to boards letter No.F.3/62/69-ITB dated 7-1-70. It was in view of this that the Addl.CsIT were made responsible for appropriate action only in cases of tax arrears between Rs.1 lakh and Rs.5 lakhs. It is however clarified that it will be the responsibility of the Addl.CsIT to ensure that appropriate action as per the directions of Director of Inspection is taken in all cases of tax arrears above Rs.5 lakhs. 3. So far as the question as to whether the Addl.CsIT(Recovery) should concern themselves only with certificated demands, it is clarified that the boards notification No.87 dated 29th May 1970 does not seek to draw any such distinction and the responsibility for review, stay, collection etc., of all demands right from their inception would be that of the Addl.CIT. 4. The above clarifications are also applicable to Addl.CIT, Jaipur who has been assigned the function of recovery in addition to his other duties.