INCOME TAX

Periodicity of meetings of Committees of Write off of irrecoverable demands and raising of monetary ceiling - Modification of Instruction No. 16/2003, dated, 18-11-2003

Instruction No. 2/2010

Dated 18-3-2010

Reference is invited to Instruction No. 16/2003 dated 18th November, 2003 in which constitution of various Committees for recommending of write off of Income tax arrears were suggested. Paras 6 & 7 of the above instruction mandated that the meetings to be held at least once in a month and report regarding the same to be sent to the Reporting Authority every month. In partial modification in Para 6 & 7 of the above instruction following clauses are inserted:-

"Para 6: The Committees will meet at least once a quarter. The Committees would discuss not only the cases which are ripe for write off/scaling down but also the cases which are being processed for write off and cases which have recommended to the Directorate of Income Tax (Recovery), New Delhi, for further processing. This will ensure a continuous review of the unrealizable demand on the registers of the department."

"Para 7: The Senior most Chief Commissioner/Commissioner/Addl. Commissioner/JCIT will convene the meeting of the committee and the Chief Commissioner/CIT/Addl.CIT/JCIT concerned will present his case. The Chief Commissioner indicated in Col. 4 of the Annexure will send a brief report of the meetings of the Zonal Committee every quarter to the Directorate of Income Tax (Recovery), Mayur Bhawan, New Delhi and endorse a copy thereof to the Board. The meetings must be held by the 15th of the last month of the quarter and report thereof must reach by the 30th of the month to the Directorate of Income Tax (Recovery). Similarly, the senior most Commissioner will send a brief report of the meetings of the Regional Committee to the Cadre Controlling CCSIT and the Sr. most Addl. CIT/JCIT will send a brief report of the meetings of the Local Committee to the CCIT concerned along the same timelines."

2. As per Delegation of Financial Power Rules S.O. No. 1469 dated 26th May, 1990, the Chief Commissioner of Income Tax is competent to recommend write off of irrecoverable demand up to Rs. 15 lakh subject to the report to the next higher authority. The Competent Authority has further raised the monetary ceilings in each such case from Rs.15 lakh to Rs. 25 lakh for Chief Commissioner of Income Tax subject to report to the next higher authority.

3. It is again reiterated that writing off of irrecoverable dues of revenue would not lead to release or waiver by the Government of its claim but would be only a write off in the Department's books. The Government shall have the right at any time during the next 30 years, counting from the date of claim to recover the amount by a Civil Suit, if it appears to the Government that the defaulter has got some assets or means to pay.

The above instruction may be brought to the notice of all officers under your charge for strict compliance.