Recovery by ITOs ITCs in case where recovery certificates issued to TROs. - Income Tax - 1664/CBDT

INSTRUCTION NO. 1664/CBDT Dated: November 22, 1985 It has been brought to the notice of the Board that the Income-tax Officers and Inspecting Assistant Commissioners in some charges are not taking any action for effecting any recovery in cases where recovery certificates have been issued to the Tax Recovery Officers. It has been reported that they have taken the stand that in view of the following directions contained in Board's instruction No. 1478 [F.No. 398/29/81-IT(B) dated 27-7-82], they are precluded from taking any action for recovery in respect of certified demands: '(v)- In so far as certified demand is concerned, recovery proceedings, stay or instalments will be the responsibility of CIT(R) and his officers. Normally the territorial CIT or his officers should not deal with the certified demands.' The aforesaid instruction was issued with the idea of removing the bottlenecks which generally arise from multiplicity of responsibility. In this connection attention is invited to the provisions of Section 225 and 226 of the Income-tax Act which authorise the Income-tax Officers to take recovery action to the extent provided therein, notwithstanding the issue of R.Cs. to the T.R.O in any particular case. It is, therefore, clarified that the direction contained in the aforesaid instruction does not override the statutory provisions contained in the Income-tax Act and consequently does not preclude the ITOs from taking any action for recovery. The position was reviewed in a meeting of the Board recently on 3-9-1985. It is emphasised that when there is necessity for immediate recovery action (such as attachment of bank account) the Income-tax Officer should exercise his powers in the interests of revenue; where there is time to intimate the TRO for recovery action without jeopardising interest of revenue, Income-tax Officer can intimate the particulars of assets to him for recovery. 2. However, as regards grants of instalments in certified cases, the ITO, IAC or CIT (Admn.) will consult his counterpart in the Recovery Wing before granting them. 3. With a view to effacting better co-ordination between ITOs and TROs, especially in metropolitan charges where separate Commissioners of Income-Tax (Recovery) are functioning, it is advisable to work out the modalities for liaison between the territorial Commissioners of Income-tax and the Commissioners of Income-tax (Recovery). 4. These instructions may please be brought to the notice of all officers working under your charges.