2. Write Off of Arrear demand is an area of Direct Taxes which has not received its due attention in the past. The Public Accounts Committee (PAC) in its 29th Report presented to Lok Sabha on 11 August 2006, the Tax Administration Reform Commission (TARC) in 2014 and the C&AG in its Report No. 3/2016 also raised concern over the slow progress in write­ off of arrears of tax demand.The direness of the situation is further reflected by the fact that only one case of high value demand has been written off till date.

3. In order to expedite the reduction of bad debts of the Government and the Department, the Directorate of Recovery has compiled a list of a total of 186 cases pending for Write- Off of Rs.25 lakhs and above as on 01.04.2016 in different Charges across India. The current status in each of these cases is duly indicated in the list. The assessee wise list is being sent/emailed to each Pr. CCIT separately. Consolidated position is enclosed as Annexure -‘A’.

3.1 The Pr.CCIT may like to issue appropriate directions to their field formations in respect of the cases of their Region so as to ensure that the process of removal of deficiencies and Write-Off by their respective Zonal Committee/ Board is expedited.

4. In respect of the Zonal Committees for Write-Off , the exercise of re-constitution of the same has been completed. Proposals for re-constitution of the Zonal Committees, as received from the CCsIT Regions have been considered and the Zonal Committees re­ constituted for the Pr.CCsiT Regions from where such proposals were received (Annexure­ B). It is assumed that no change in the Zonal Committees was required by the Regions from where no proposals/requests were received.

4.1 In respect of the frequency of meetings of the Zonal Committees, it is brought to your kind notice that as per CBDT’s Instruction No. 16/2003 dated 18.11.2003, the Zonal Committees are required to meet at least once a month. Further, the senior-most CCIT among the permanent members of the Zonal Committee is required to send a brief report of the Meetings of the Zonal Committee every month to the Directorate of Recovery & TDS and endorse a copy thereof to the Board.

5. The Central Action Plan for the F.Y.2017-18, also has laid down the following targets in respect of write-off of demand.

Submission   of   replies to   queries raised by the Board, DIT (Recovery) and   Zonal, Regional and Local Committees in cases already referred


Identification of fresh cases for write-off


Write-off of arrears under ad-hoc and summary procedures


Submission of proposals for write off to the Board  or committees in the cases identified as above



5.1  It is requested that appropriate  action in this regard may kindly be taken and the targets as outlined in the Central Action Plan for F.Y. 2017-18 be met.

Yours faithfully,


New Delhi

6th Floor, Mayur Bhawan, Connaught Circus, New Delhi-110001
Ph.No.23414395 ,Fax No.   23417681 & 23413218
Email: delhi.dit.recovery@incometax .gov. in

Kavita Bhatnagar, IRS  
Addl.Director General

F.No.1 (324)/DIT(R) Write Off/Special Cell/2017-18/630


If you like my article, please share this on :

Search Professional Post Query Post Assignment Read More Articles

In case of business query on above subject, comment here or contact One Roof Consultant

article author

One Roof Consultant

Tax Expert
Tax solutions provider , One Roof Consultant


  • How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financial Year 2016-17

  • Do not wait till 31st July to file your Income Tax Return – Keep Ready 9 documents to file before due date

  • Missed to Submit HRA declaration to Employer? You can claim HRA at the time of Filing Returns and get Refund from Income Tax

  • Features and Step wise process - Income Declaration Scheme 2016 – Convert your Black Money to White

  • How to Pay Zero Tax for Business Receipts -Turnover of Rs 1 Crore

  • How to Pay Zero Tax for Professionals (CA, CS, Lawyers, Doctors, etc) earning Income of Rs 16 Lakhs

  • Why you should file Income Tax Return? Benefits of Filing Income Tax Returns

  • How to save Rs 10 crore as retirement corpus

  • Having Turnover of Less than 10 Lakhs? How to File NIL Service Tax return with Circular No 033/2012

  • Starting a New Business or Profession? Compare Structure and type of Entity– Sole, Partnership, LLP or Company

  • Revised and Latest TDS Tax Deducted at Source Rate Chart for FY 2016-17 AY 2017-18

  • Exemption for Capital Gain Arising on Transfer of Resident House Property

  • WILL- Important points, Tax Advantages of will and Format of WILL

  • Revised and Latest TDS Tax Deducted at Source Rate Chart for FY 2016-17 AY 2017-18

  • Exemption for Capital Gain Arising on Transfer of Resident House Property

  • WILL- Important points, Tax Advantages of will and Format of WILL

  • Senior Citizens Tax Benefits in Income Tax Act - Filing, exemptions, advance tax and other benefits

  • Registration process for Trade Mark


    Always stay updated with latest information on expertmile

    I hope by reading this article you got enlighten on ,Write-off of Arrear Demand of Rs.25 Lakhs and above-reg.further to mention before taken any financial decision based on this content it is prefered to take an expert opinion as matter can be subjective.