Scaling down of arrears. - Income Tax - 1413/CBDT

INSTRUCTION NO. 1413/CBDT Dated: September 21, 1981 Attention is invited to the instructions contained in Boards letter F.NO.385/86/71-IT(B) dated 4-9-75 Instructions No.873 regarding scaling down of income-tax arrears. 2. It has been decided that the power of scaling down of W.T., G.T. Expenditure tax and estate duty arrears should be delegated to the CsWT, GT, Expenditure tax and controllers of estate duty respectively in the same manner as laid down for scaling down of arrear demands of income-tax subject to limits mentioned in the following paragraph. 3. CsWT, GT, Expenditure tax and controllers of estate duty may exercise power of scaling down of arrears in respect of wealth-tax-gift-tax, expenditure tax and estate duty acts, where aggregate arrear demand under the aforesaid acts outstanding against an assessee is Rs.50,000 or less. Cases in which such aggregate demand exceeds Rs.50000 should be referred to the CBDT after the same have been scrutinised and recommended for scaling down by the appropriate zonal committee. 4. Instructions issued by the board from time to time in respect of scaling down of income-tax arrears will also hold good for scaling down of arrears of the wealth-tax, Gift-tax, expenditure-tax and estate duty demands subject to the monetary limits indicated above. 5. The board expect that the procedure prescribed for scaling down of arrears, mentioned above will expedite the process of reduction of tax arrears. You are accordingly requested to take urgent steps to review and process all cases of scaling down of tax arrears in respect of wealth-tax, gift-tax, expenditure tax and estate duty. 6. This issues with the concurrence of the Ministry of finance deptt. of expenditure vide their U.O.No. 3239-E-II(A)/76 dated 12-10-76. 7. The board further desire that the progress should be reported to the board quarterly by the 20th of the month following the quarter. These statistical reports should be furnished separately for these taxes.