Write Off of irrecoverable demands - raising of monetary ceiling – CBDT Instructions
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.
It is 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 Board wants these instructions to be brought to the notice of all officers in the field for strict compliance.
CBDT INSTRUCTION NO 2/2010, Dated: March 19, 2010