Section 121: Irrecoverable debts

(1) The Chairperson may write off any sum due on account of any tax or of the costs of recovering any tax if such sum is, in his opinion irrecoverable:

Provided that where the sum written off in favour of any person exceeds one thousand rupees, the previous sanction of the Council shall be first obtained.

(2) The Chairperson shall report to the Council every case in which any sum has been written off under sub-section (1).

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 14 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 121

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