1893/1992. - Income Tax - 1893/1992

INSTRUCTION NO. 1893/1992 Dated: March 26, 1992 Section(s) Referred: 226 Statute: Income - Tax Act, 1961 As you are aware as a result of the amendment of section 226 and insertion of Rule 94 in the 2nd Schedule to the I.T.Act w.e.f. 1-4-89, the Assessing Officer does not have any powers of recovery u/s.226 in cases where a tax recovery certificate(TRC) has been issued by him or has been drawn up by the TRO. In such cases, the TRO alone can exercise these powers. Therefore, there is a need for the Assessing Officer to maintain a record of all such cases where the TRO has drawn up tax recovery certificate. 2. Till 1989 the Assessing Officer used to maintain a register in Form ITNS-161 of recovery certificates issued by him and a corresponding register in Form ITNS-162 was maintained by the TRO. Subsequently on account of the removal of time limit of 3 years u/s.231 for issue of the Tax Recovery certificate and the decision to draw up TRCs in selected cases only and in view of the fact that the Assessing Officer's register was rarely put to any use, the register in Form ITNS-161 was discontinued. Therefore, presently the Assessing Officer does not perhaps keep any record of cases where a recovery certificate has been drawn up by the TRO. 3. With a view to ensuring that the Assessing Officer does not take recovery action u/s.226 in cases where tax recovery certificates have been issued by him or drawn up by the TRO, the Board desire that whenever the TRO draws up a tax recovery certificate and enters the same in his register in Form ITNS-162, he should send intimation thereof to the concerned Assessing Officer so that the Assessing Officer makes a note thereof against the corresponding entry in his D CR in the following form--Tax Recovery Certificate drawn up by the TRO(address of TRO) and entered in his register at Sl.No.____on(date)_______". Obviously this note will have to be carried forward to the new registers whenever the D CR entries are carried forward. 4. Such an exercise of indicating against the relevant entries in the Assessing Officer's D CR, the details regarding the issue/drawing up of tax recovery certificates, may please be carried out immediately in respect of all the existing arrear and current demand entries also. 5. The above instructions may please be brought to the notice of all officers working in your region and suitable action in this regard may be taken.