Demands exceeding Rs. 2,000 and upto Rs. 1,00,000 to be referred to the Local Committees. - Income Tax - 1003/CBDT

INSTRUCTION NO. 1003/CBDT Dated : August 27, 1976 Reference Board's letter No. 375/69/72-IT(B), dated 26th July 1972 on the above subject. The instructions contained therein, requiring demands exceeding Rs. 2,000 and upto Rs. 1,00,000 to be referred to the Local Committees, are modified to the extent indicated below:- 2. With effect from 1st August 1976, the powers of write off of irrecoverable arrears of Income-tax exercisable by IACs and ITOs, Class-I and II have been enhanced vide Board's letter No. 385/85/75-IT (B), dated the 31st July 1976 to the extent indicated below:- 1. All IACs. upto Rs. 10,000 in each case. 2. All ITOs-Class-I upto Rs. 1,000 in each case. 3. All ITOs-Class-II upto Rs. 500 in each case. In the context of above enhancement, it has been decided by the Board that the IACs may now write off irrecoverable arrear demands upto Rs. 10,000 under their enhanced powers of write off without referring the cases to the Local Committee for its recommendations. It is also clarified that the ITOs Class-I/Class-II can exercise their enhanced powers of Rs. 1,000/500 in dependently and without referring the matter to any other authority or the Local Committee. Demands exceeding Rs. 10,000 and upto Rs. 1 lakh will, however, be placed before the Local Committee for its recommendation before the irrecoverable income-tax arrears are written off in such cases. 3. The Board hope that, with the above relaxation, the work of write off will be further activated and it will be possible to remove the dead wood from the registers of your Charge before 31st March 1977, at least in respect of arrears of income-tax which have been outstanding for 10 years and more.