Para 80 of Minutes of Commissioner's conference, 1976. - Income Tax - 979/CBDT

INSTRUCTION NO. 979/CBDT Dated : July 15, 1976 Section(s) Referred: 226(5) Statute: Income - Tax Act, 1961 Reference Para 80 of the Minutes of the Commissioner's Conference, 1976 which reads as under:- "Coercive action should be taken to effect recovery of preassessment taxes and post-assessment taxes. In particular penalties u/s 221 should invariably be levied before any other coercive step is taken. The powers of distraint available u/s 226(5) should be more effectively exercised in view of the clear instructions of the Board contained in D.O. letter No. 405/379/72-ITCC dated 12-12-1972". A copy of the guidelines issued by Shri G.S. Samoath as Commissioner of Income-tax (Recovery), Madras, in this regard are enclosed for your consideration and utilisation. 2. The Board are of the view that the powers available to the department u/s 226(5) would be very effective in those cases where the demands were not too heavy and that these powers should be more widely exercised. 3. The Board desire that details regarding the cases in which the powers of distraint u/s 226(5) of the Income-tax Act, 1961 have been exercised, may be kept readily available as the Board might like to know in how many cases these powers have been exercised and with what results.