Recovery of compulsory deposit. - Income Tax - 1533/CBDT

INSTRUCTION NO. 1533/CBDT Dated: November 1, 1983 Section 6 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 provides that if a person liable to make compulsory deposit has failed to make such a deposit , the Income-tax Officer, shall by order in writing, direct that such person shall make the compulsory deposit with reference to his correct income. It has been brought to the notice of the Board that some of the assessees, who do not make full payment of compulsory deposit with reference to their correct income claim that the Income-tax Officer can take action u/s 6 of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 for recovery of the deposit only when there is complete failure on the part of the assessee and that he has no power to make recovery of short payments of the compulsory deposit. 2. This matter has been examined in the Board in consultation with the Ministry of Law and it has been decided that if only a part of the compulsory deposit' is paid by the assessee, it does not make the balance of 'compulsory deposit' payable or unpaid as not a 'compulsory deposit'. In other words, the remaining unpaid part of the 'compulsory deposit' i.e. the shortfall does not cease to be a 'compulsory deposit'. It continue to be so. Therefore, as long as the power is there to recover the 'compulsory deposit' or to issue a notice directing the payment of 'compulsory deposit' it applies to the entire 'compulsory deposit' payable as well as to the unpaid part of 'compulsory deposit' 3. You are, therefore, requested to bring this to the notice of all the officers working in your charge and direct them to take suitable action for recovery of compulsory deposit whether it is fully or partially unpaid.