Steps to recover the certified arrears. - Income Tax - 1240/CBDT

INSTRUCTION NO. 1240/CBDT Dated : March 6, 1979 Section(s) Referred: 222 ,245D(1) Statute: Income - Tax Act, 1961 The Board is examining the question whether on the admission of a Settlement Commission u/s.245-D of the I.T.Act and during the pendency of the proceedings before the Settlement Commission, the prior demands raised in the assessment in respect of which the application is filed will cease to be enforceable. Some time is likely to elapse before a final decision is taken on the subject. Meanwhile the Board desires that pending a final decision in the matter recovery certificates should be issued immediately u/s.222, in all such cases where the period for commencing recovery proceedings expire on 31-3-79. The recovery certificates should be sent to the TROs with the following note viz: "In respect of the assessment in which this demand was raised an application for settlement has been admitted by the Settlement Commission u/s.245-D(1) of the I.T.Act 1961 and the proceedings before the Settlement Commission is pending. This certificate is issued to save limitation. No further steps to recover the certified arrears may be taken till receipt of a further communication from me".