Delegating powers to write-off irrecoverable demands relating to other Direct Taxes. - Income Tax - 958/CBDT

INSTRUCTION NO. 958/CBDT Dated : June 11, 1976 The question of delegating powers to write-off irrecoverable demands relating to other Direct Taxes has been under consideration for some time past. Formal orders delegating the financial powers in this respect to Commissioners of Wealth-tax/Gift-tax/Expenditure tax/Controllers of EstateDuty, have been separately issued vide Department of Revenue Banking letter of even number dated 10th June, 1976. Steps are also being taken to amend the Delegation of Financial Powers Rules suitably in this regard. 2. Although full powers to write-off irrecoverable balances of Wealth-tax, Gift-tax, Expenditure-tax and Estate Duty demands subject to a report to the next higher authority have been given to Commissioners of Wealth-tax, Gift-tax, Expenditure-tax and Controllers of Estate Duty, it has been considered necessary to restrict these powers to a certain extent. It has, therefore, been decided that for the purposes of write-off of arrears relating to other Direct Taxes, the procedure to be followed should be the same as that followed for the write-off of income-tax arrears, except that the powers of write-off of the Commissioners of Wealth-tax, Gift-tax, Expenditure-tax and Controller of Estate Duty are to be limited to the amount of Rs. 5 lakhs or less. Proposals for write-off of arrears of amounts exceeding Rs. 5 lakhs in respect of the said four taxes, may be sent to the Board alongwith recommendations of the Zonal Committee for final orders. 3. Instructions issued from the Board from time to time in respect of write-off balances of irrecoverable income-tax demands will also hold good for writing-off of balances of irrecoverable Wealth-tax, Gift-tax, Expenditure-tax and Estate Duty demands subject to the monetary limits indicated above.