Procedure for writing off of tax arrears. - Income Tax - 1394/CBDT

INSTRUCTION NO. 1394/CBDT Dated: May 4, 1981 Reference is invited to boards instructions No.958 (F.No.313/85/74-ED) dated the 11th June 1976 printed at Annex IX in the brochure on write off issued in 1979. It was indicated therein that the procedure for writing off arrears relating to other direct taxes e.g. WT, GT, Expenditure-tax and Estate Duty would be the same as that followed for write off of Income-tax arrears. The powers of the commissioners or controllers of Estate duty were however restricted to Rs.5 lakhs or less in each case. The proposals exceeding Rs.5 lakhs in each case were to be sent to the board for administrative approval alongwith the recommendations of the zonal committee. 2. Pursuant to the above instructions separate write off proposals in the case of the same assessee are being received by the board in respect of income-tax and to her direct taxes. In order to avoid multiplicity of proposals, the board have decided that in such cases a composite proposal need only be sent. 3. Therefore in every case where the income-tax arrears exceed Rs.10 lakhs and 5 lakhs respectively for which the boards prior approval is at present required instead of sending separate proposals a composite proposal rather than separate proposals may be sent to the board on the prescribed proformae, together with complete assessment records of income-tax and other direct taxes. 4. It has been observed that some write off proposals do not include the amount of interest chargeable for late payment of tax. This leads to needless correspondence. It is therefore desired that in every proposal the total amount of tax arrears should be worked out after including the interest chargeable for late payment of tax upto the end of the month preceding the month in which the proposal is considered by the zonal committee. 5. The above instruction on the subject may please be brought to the notice of all officers of your charge.