Mode of sale of the property whether by auction or through negotiation by the assessee. - Income Tax - 458/CBDT

INSTRUCTION NO. 458/CBDT Dated: September 27, 1972 Section(s) Referred: 226 Statute: Income - Tax Act, 1961 It has come to the notice of the Board that an assessee came up with a request for a negotiated sale at the stage when his property was put up for recovery of large arrears of tax. Auction was postponed at his request from time to time with the result that a good deal of time elapsed. The assessee was thereby trying to gain time only to file a writ and dislocating the Department's machinery for recovery. While the Board would not wish to interfere with the Commissioners discretion as to the mode of sale of the property whether by auction or through negotiation by the assessee, it would desire the Commissioners to exercise a good deal of caution in this direction and decide the matter after considering the behaviour and the attitude of the taxpayer. In case the Commissioner was of the opinion that the assessee was a recalcitrant one, he may go in for auction without offering him an opportunity for a negotiated sale.