Procedure for Recovery of Tax
83[1] [[See sections 222 and 276]]
Part I
General
Provisions
Definitions.
1. In this Schedule, unless the context
otherwise requires,-
84[2] [(a) “certificate”, except in rules 7, 44, 65
and sub-rule (2) of rule 66, means the certificate drawn up by the Tax Recovery
Officer under section 222 in respect of any assessee referred to in that
section ;]
(b) “defaulter” means the assessee mentioned in the certificate;
(c) “execution”, in relation to a certificate, means recovery of
arrears in pursuance of the certificate;
(d) “movable property” includes growing crops;
(e) “officer” means a person authorised to make an attachment or
sale under this Schedule;
(f) “rule” means a rule contained in this Schedule; and
(g) “share in a corporation” includes stock, debenture-stock,
debentures or bonds.
Issue of notice.
2. 85[3] [When a certificate has been drawn up by the Tax Recovery
Officer] for the recovery of arrears under this Schedule, the Tax Recovery
Officer shall cause to be served upon the defaulter a notice requiring the
defaulter to pay the amount specified in the certificate within fifteen days
from the date of service of the notice and intimating that in default steps
would be taken to realise the amount under this Schedule.
When certificate
may be executed.
3. No step in execution of a certificate
shall be taken until the period of fifteen days has elapsed since the date of
the service of the notice required by the preceding rule:
Provided that, if the
Tax Recovery Officer is satisfied that the defaulter is likely to conceal,
remove or dispose of the while or any part of such of his movable property as
would be liable to attachment in execution of a decree of a civil court and
that the realisation of the amount of the certificate would in consequence be
delayed or obstructed, he may at any time direct, for reasons to be recorded in
writing, and attachment of the whole or any part of such property
:
Provided further that
if the defaulter whose property has been so attached furnishes security to the
satisfaction of the Tax Recovery Officer, such attachment shall be cancelled
from the date on which such security is accepted by the Tax Recovery Officer.
Mode of recovery.
4. If the amount mentioned in the notice
is not paid within the time specified the rein or within such further time as
the Tax Recovery Officer may grant in his discretion, the Tax Recovery Officer
shall proceed to realise the amount by one or more of the following modes :—
(a) by attachment and sale of the defaulter’s movable property;
(b) by attachment and sale of the defaulter’s immovable
property;
(c) by arrest of the defaulter and his detention in prison;
(d) by appointing a receiver for the management of the
defaulter’s movable and immovable properties.
Interest, costs and
charges recoverable.
5. There shall be recoverable, in the
proceedings in execution of every certificate,-
(a) such interest upon the amount of tax or penalty or other sum
to which the certificate relates as is payable in accordance with sub-section
(2) of section 220, and
(b) all charges incurred in respect of-
(i) the service of notice upon the defaulter to pay the arrears,
and of warrants and other processors, and
(ii) all other proceedings taken for realising the arrears.
Purchaser’s title.
6. (1) Where property is sold in execution
of a certificate, there shall vest in the purchaser merely the right, title and
interest of the defaulter at the time of the sale, even though the property
itself be specified.
(2) Where immovable property is sold in execution of a
certificate, and such sale has become absolute, the purchaser’s right, title
and interest shall be deemed to have vested in him from the time when the
property is sold, and not from the time when the sale becomes absolute.
Suit against
purchaser not maintainable on ground of purchaser being made on behalf of
plaintiff.
7. (1) No suit shall be maintained against
any person claiming title under a purchase certified by the Tax Recovery
Officer in the manner laid down in this Schedule, on the ground that the
purchase was made on behalf of the plaintiff or on behalf of some one through
whom the plaintiff claims.
(2) Nothing in this section shall bar a suit to obtain a
declaration that the name of any purchaser certified as aforesaid was inserted
in the certificate fraudulently or without the consent of the real purchaser,
or interfere with the right of a third person to proceed against the property,
though ostensibly sold to the certified purchaser , on
the ground that it is liable to satisfy a claim of such third person against
the real owner.
86[4] [Disposal of proceeds of execution.
8. (1) Whenever assets are realised by
sale or otherwise in execution of a certificate, the proceeds shall be disposed
of in the following manner, namely :—
(a) they shall first be adjusted towards the amount due under
the certificate in execution of which the assets were realised and the costs
incurred in the course of such execution;
(b) if
there remains a balance after the adjustment referred to in clause (a), the same shall be utilised for
satisfaction of any other amount recoverable from the assessee under this act
which may be due on the date on which the assets were realised; and
(c) the balance, if any, remaining after the adjustments under
clauses (a) and (b) shall be paid to the defaulter.
(2) If the defaulter disputes any
adjustment under clause (b) of
sub-rule (1), the Tax Recovery Officer shall determine the dispute.]
General bar to
jurisdiction of civil courts, save where fraud alleged.
9. Except as otherwise expressly provided
in this Act, every question arising between the 87[5] [Tax Recovery] Officer and the defaulter or their
representatives, relating to the execution, discharge or satisfaction of a
certificate 88[6] [***], or relating to the confirmation or setting aside by
an order under this Act of a sale held in execution of such certificate, shall
be determined, not by suit, but by order of the Tax Recovery Officer before
whom such question arises:
Provided that a suit may be brought in a civil court in respect of
any such question upon the ground of fraud.
Property exempt
from attachment.
10. (1) All such property as is by the Code
of Civil Procedure, 1908 (5 of 1908), exempted from attachment and sale in
execution of a decree of a civil court shall be exempt from attachment and sale
under this Schedule.
(2) The Tax Recovery Officer’s decision as to what property
is so entitled to exemption shall be conclusive.
Investigation by
Tax Recovery Officer.
11. (1) Where any claim is preferred to, or
any objection is made to the attachment or sale of, any property in execution
of a certificate, on the ground that such property is not liable to such attachment
or sale, the Tax Recovery Officer shall proceed to investigate the claim or
objection:
Provided that no such
investigation shall be made where the Tax Recovery Officer considers that the
claim or objection was designedly or unnecessarily delayed.
(2) Where the property to which the claim or objection
applies has been advertised for sale, the Tax Recovery Officer ordering the
sale may postpone it pending the investigation of the claim or objection, upon
such terms as to security or otherwise as the Tax Recovery Officer shall deem
fit.
(3) The claimant or objector must adduce evidence to show
that—
(a) (in the case of immovable property) at the date of the
service of the notice issued under this Schedule to pay the arrears, or
(b) (in the case of movable property) at the date of the
attachment,
he
had some interest in, or was possessed of, the property in question.
(4) Where, upon the said investigation, the Tax Recovery
Officer is satisfied that, for the reason stated in the claim or objection, such
property was not, at the said date, in the possession of the defaulter or of
some person in trust for him or in the occupancy of a tenant or other person
paying rent to him, or that, being in the possession of the defaulter at the
said date, it was so in his possession, not on his own account or as his own
property, but on account of or in trust for some other person, or partly on his
own account and partly on account of some other person, the Tax Recovery
Officer shall make an order realising the property, wholly or to such extent as
he thinks fit, from attachment or sale.
(5) Where the Tax Recovery Officer is satisfied that the
property was, at the said date, in the possession of the defaulter as his own
property and not on account of any other person, or was in the possession of
some other person in trust for him, or in the occupancy of a tenant or other
person paying rent to him, the Tax Recovery Officer shall disallow the claim.
(6) Where a claim or an objection is preferred, the party
against whom an order is made may institute a suit in a civil court to
establish the right which he claims to the property in dispute; but subject to
the result of such suit (if any), the order of the Tax Recovery Officer shall
be conclusive.
Removable of
attachment on satisfaction or cancellation of certificate.
12. Where-
(a) the
amount due, with cost and all charges and expenses resulting from the
attachment of any property or incurred in order to hold a sale, are paid to the
Tax Recovery Officer, or
(b) the certificate is cancelled,
the
attachment shall be deemed to be withdrawn and, in the case of immovable
property, the withdrawal shall, if the defaulter so desires, be proclaimed at
his expenses, and a copy of the proclamation shall be affixed in the manner provided
by this Schedule for a proclamation of sale of immovable property.
Officer entitled to attach and sell.
13. The attachment and sale of movable
property and the attachment and sale of immovable property may be made by such
person as the Tax Recovery Officer may from time to time direct.
Defaulting
purchaser answerable for loss on resale.
14. Any deficiency of price which may happen
on a resale by reason of the purchaser’s default, and all expenses attending such
resale, shall be certified to the Tax Recovery Officer by the officer holding
the sale, and shall, at the instance of either the 89[7] [Tax Recovery] Officer or the defaulter, be recoverable
from the defaulting purchaser under the procedure provided by this Schedule:
Provided that no such application shall be entertained unless filed
within fifteen days from the date of resale.
Adjournment or
stoppage of sale.
15. (1) The Tax Recovery Officer may, in his
discretion, adjourn any sale hereunder to a specified day and hour; and the
officer conducting any such sale may, in his discretion, adjourn the sale,
recording his reasons for such adjournment:
Provided that, where
the sale is made in, or within the precincts of, the office of the Tax Recovery
Officer, no such adjournment shall be made without the leave of the Tax
Recovery Officer.
(2) Where a sale of immovable property is adjourned under
sub-rule (1) for a longer period that one calendar month, a fresh proclamation
of sale under this Schedule shall be made unless the defaulter consents to
waive it.
(3) Every sale shall be stopped if, before the lot is
knocked down, the arrears and costs (including the costs of the sale) are
tendered to the officer conducting the sale, or proof is given to his satisfaction
that the amount of such areas and costs has been paid to the Tax Recovery
Officer who ordered the sale.
Private alienation
to be void in certain cases.
16. (1) Where a notice has been served on a
defaulter under rule 2, the defaulter or his representative in interest shall
not be competent to mortgage, charge, lease or otherwise deal with any property
belonging to him except with the permission of the Tax Recovery Officer, nor
shall any civil court issue any process against such property in execution of a
decree for the payment of money.
(2) Where an attachment has been made under this Schedule,
any private transfer or delivery of the property attached or of any interest
therein and any payment to the defaulter of any debt, dividend or other moneys
contrary to such attachment, shall be void as against all claims enforceable
under the attachment.
Prohibition against
bidding or purchase by officer.
17. No officer or other person having any
duty to perform in connection with any sale under this Schedule shall, either
directly or indirectly, bid for, acquire or attempt to acquire any interest in
the property sold.
Prohibition against
sale on holidays.
18. No sale under this Schedule shall take
place on a Sunday or other general holiday recognised by the State Government
or on any day which has been notified by the State Government to be a local
holiday for the area in which the sale is to take place.
Assistance by
police.
19. Any officer authorised to attach or sell
any property or to arrest the defaulter or charged with any duty to be
performed under this Schedule, may apply to the officer-in-charge of the
nearest police station for such assistance as may be necessary in the discharge
of his duties, and the authority to whom such application is made shall depute
a sufficient number of police officers for furnishing such assistance.
90[8] [Entrustment of certain functions by
Tax Recovery Officer.
19A. A Tax Recovery Officer may, with the
previous approval of the Deputy Commissioner, entrust any of his functions as
the Tax Recovery Officer to any other officer lower than him in rank (not being
lower in rank than an Inspector of Income-tax) and such officer shall, in
relation to the functions so entrusted to him, be deemed to be a Tax Recovery
Officer.]
Part II
Attachment and
Attachment
Warrant.
20. Except as otherwise provided in this
Schedule, when any movable property is to be attached, the officer shall be
furnished by the Tax Recovery Officer (or other officer empowered by him in that
behalf) a warrant in writing and signed with him name specifying the name of
the defaulter and the amount to be realised.
Service of copy of warrant.
21. The officer shall cause a copy of the
warrant to be served on the defaulter.
Attachment.
22. If, after service of the copy of the
warrant, the amount is not paid forthwith, the officer shall proceed to attach
the movable property of the defaulter.
Property in defaulter’s possession.
23. Where the property to be attached in
movable property (other than agricultural produce) in the possession of the
defaulter, the attachment shall be made by actual seizure, and the officer
shall keep the property in his own custody or the custody of one of his
subordinates and shall be responsible for due custody thereof:
Provided that when the
property seized is subject to speedy and natural decay or when the expense of
keeping it in custody is likely to exceed its value, the officer may sell it at
once.
Agricultural produce.
24. Where the property to be attached in agricultural
produce, the attachment shall be made by affixing a copy of the warrant of
attachment—
(a) where
such produce is growing crop—on the land on which such crop has grown, or
(b) where
such produce has been cut or gathered—on the threshing floor or place for
treading out grain or the like, or fodder-stack, on or in which it is
deposited,
and another copy on the outer door or on some other
conspicuous part of the house in which the defaulter ordinarily resides, or
with the leave of the Tax Recovery Officer, on the outer door or on some other
conspicuous part of the house in which he carries on business or personally
works for gain, or in which he is known to have last resided or carried on
business or personally worked for gain. The produce shall, thereupon, be deemed
to have passed into the possession of the Tax Recovery Officer.
Provisions as to agricultural produce
under attachment.
25. (1) Where agricultural produce is
attached, the Tax Recovery Officer shall make such arrangements for the
custody, watching, tending, cutting and gathering thereof as he may deem
sufficient; 91[9] [and he shall have power to defray the cost of such arrangements].
(2) Subject to such conditions as may be imposed by the Tax
Recovery Officer in this behalf, either in the order of attachment or in any
subsequent order, the defaulter may tend, cut, gather and store the produce and
do any other act necessary for maturing or preserving it; and if the defaulter
fails to do all or any of such acts, any person appointed by the Tax Recovery
Officer in this behalf may, subject to the like conditions, do all or any of
such acts, and the costs incurred by such person shall be recoverable from the
defaulter as if they were included in the certificate.
(3) Agricultural produce attached as a growing crop shall
not be deemed to have ceased to be under attachment or to require re-attachment
merely because it has been served from the soil.
(4) Where an order for the attachment of a growing crop has
been made at a considerable time before the crop is likely to be fit to be cut
or gathered, the Tax Recovery Officer may suspend the execution of the order
for such time as he thinks fit, and may, in his discretion, make a further
order prohibiting the removal of the crop pending the execution of the order of
attachment.
(5) A growing crop which from its nature does not admit of
being stored shall not be attached under this rule at any time less than twenty
days before the time at which it is likely to be fit to be cut or gathered.
Debts and shares, etc.
26. (1) In the case of—
(a) a
debt not secured by a negotiable instrument,
(b) a
share in a corporation, or
(c) other
movable property not in the possession of the defaulter except property
deposited in, or in the custody of, any court,
the attachment shall be made by a written order
prohibiting,—
(i) in
the case of the debt—the creditor from recovering the debt and the debtor from
making payment thereof until the further order of the Tax Recovery Officer;
(ii) in
the case of the share—the person in whose name the share may be standing from
transferring the same or receiving any dividend thereon;
(iii) in
the case of the other movable property (except as aforesaid)—the person in
possession of the same from giving it over the defaulter.
(2) A copy of such order shall be affixed on some
conspicuous part of the office of the Tax Recovery Officer, and another copy
shall be sent, in the case of the debt, to the debtor, in the case of the
share, to the proper officer of the corporation, and in the case of the other
movable property (except as aforesaid), to the person in possession of the
same.
(3) A debtor prohibited under clause (i) of sub-rule (1) may pay the amount
of his debt to the Tax Recovery Officer, and such payment shall discharge him
as effectually as payment to the party entitled to receive the same.
Attachment of decree.
27. (1) The attachment of a decree of a civil
court for the payment of money or for sale in enforcement of a mortgage or
charge shall be made by the issue to the civil court of a notice requesting the
civil court to stay the execution of the decree unless and until—
(i) the
Tax Recovery Officer cancels the notice, or
(ii) the
92[10] [Tax Recovery]
Officer or the defaulter applies to the court receiving such notice to execute
the decree.
(2) Where a civil court receives an application under
clause (ii) of sub-rule (1), it
shall, on the application of the 92[11] [Tax Recovery]
Officer or the defaulter and subject to the provisions of the Code of Civil
Procedure, 1908 (5 of 1908), proceed to execute the attached decree and apply
the net proceeds in satisfaction of the certificate.
(3) The 92[12] [Tax Recovery]
Officer shall be deemed to be the representative of the holder of the attached
decree, and to be entitled to execute such attached decree in any manner
lawful of the holder thereof.
Share in movable property.
28. Where the property to be attached
consists of the share or interest of the defaulter in movable property
belonging to him and another as co-owners, the attachment shall be made by a
notice to the defaulter prohibiting him from transferring the share or interest
or charging it in any way.
Salary of Government Servants.
29. Attachment of the salary or allowances of
servants of the Government or a local authority may be made in the manner
provided by rule 48 of Order 21 of the First Schedule to the Code of Civil
Procedure, 1908 (5 of 1908), and the provisions of the said rule shall, for the
purposes of this rule, apply subject to such modifications as may be necessary.
Attachment of negotiable instrument.
30. Where the property is a negotiable
instrument not deposited in a court nor in the custody of a public officer, the
attachment shall be made by actual seizure, and the instrument shall be brought
before the Tax Recovery Officer and held subject to his orders.
Attachment of property in custody of
court or public officer.
31. Where the property to be attached is in
the custody of any court or public officer, the attachment shall be made by a
notice to such court or officer, requesting that such property, and any
interest or dividend becoming payable thereon, may be held subject to the
further orders of the Tax Recovery Officer by whom the notice is issued:
Provided that, where such
property is in the custody of a court, any question of title or priority
arising between the 93[13] [Tax Recovery]
Officer and any other person, not being the defaulter, claiming to be
interested in such property by virtue of any assignment, attachment or
otherwise, shall be determined by such court.
Attachment of partnership property.
32. (1) Where the property to be attached
consists of an interest of the defaulter, being a partner, in the partnership property,
the Tax Recovery Officer may make an order charging the share of such partner
in the partnership property and profits with payment of the amount due under
the certificate, and may, by the same or subsequent order, appoint a receiver
of the share of such partner in the profits, whether already declared or
accruing and of any other money which may become due to him in respect of the
partnership, and direct accounts and inquiries and make an order for the sale
of such interest or such other order as the circumstances of the case may
require.
(2) The other persons shall be at liberty at any time to
redeem the interest charged or, in the case of a sale being directed, to
purchase the same.
Inventory.
33. In the case of attachment of movable
property by actual seizure, the officer shall, after attachment of the
property, prepare an inventory of all the property attached, specifying in it
the place where it is lodged or kept, and shall forward the same to the Tax
Recovery Officer and a copy of the inventory shall be delivered by the officer
to the defaulter.
Attachment not to be excessive.
34. The attachment by seizure shall not be
excessive, that is to say, the property attached shall be as nearly as possible
proportionate to the amount specified in the warrant.
Seizure between sunrise and sunset.
35. Attachment by seizure shall be made after
sunrise and before sunset and not otherwise.
Power to break open doors, etc.
36. The officer may break open any inner or
outer door or window of any building and enter any building in order to seize
any movable property if the officer has reasonable grounds to believe that such
building contains movable property liable to seizure under the warrant and the
officer has notified his authority and intention of breaking open if admission
is not given. He shall, however, give all reasonable opportunity to women to
withdraw.
37. The Tax Recovery Officer may direct that
any movable property attached under this Schedule or such portion thereof as
may seem necessary to satisfy the certificate shall be sold.
Issue of proclamation.
38. When any sale of movable property is
ordered by the Tax Recovery Officer, the Tax Recovery Officer shall issue a
proclamation, in the language of the district, of the intended sale, specifying
the time and place of sale and whether the sale is subject to confirmation or
not.
Proclamation how made.
39. (1) Such proclamation shall be made by
beat of drum or other customary mode,—
(a) in
the case of property attached by actual seizure—
(i) in
the village in which the property was seized, or, if the property was seized in
a town or city, then, in the locality in which it was seized; and
(ii) at
such other places as the Tax Recovery Officer may direct;
(b) in
the case of property attached otherwise than by actual seizure, in such places,
if any, as the Tax Recovery Officer may direct.
(2) A copy of the proclamation shall also be affixed in a
conspicuous part of the office of the Tax Recovery Officer.
40. Except where the property is subject to
speedy and natural decay or when the expense of keeping it in custody is likely
to exceed its value no sale of movable property under this Schedule shall,
without the consent in writing of the defaulter, take place until after the
expiry of at least fifteen days calculated from the date on which a copy of the
sale proclamation was affixed in the office of the Tax Recovery Officer.
41. (1) Where the property to be sold is agricultural
produce, the sale shall be held,—
(a) if
such produce is a growing crop—on or near the land on which such crop has
grown, or
(b) if
such produce has been cut or gathered—at or near the threshing floor or place for
treading out grain or the like, or fodder-stack, on or in which it is
deposited:
Provided that the Tax
Recovery Officer may direct the sale to be held at the nearest place of public
resort, if he is of opinion that the produce is thereby likely to sell to
greater advantage.
(2) Where, on the produce being put up for sale,—
(a) a
fair price, in the estimation of the person holding the sale, is not offered
for it, and
(b) the
owner of the produce, or a person authorised to act on his behalf, applies to have
the sale postponed till the next day or, if a market is held at the place of
sale, the next market day,
the sale shall be postponed accordingly, and shall be then
completed, whatever price may be offered for the produce.
Special provisions relating to growing
crops.
42. (1) Where the property to be sold is a
growing crop and the crop from its nature admits of being stored but has not
yet been stored, the day of the sale shall be so fixed as to admit of the crop
being made ready for storing before the arrival of such day, and the sale shall
not be held until the crop has been cut or gather and is ready for storing.
(2) Where the crop from its nature does not admit of being
stored or can be sold to a greater advantage in an unripe stage (e.g., as green wheat), it may be sold
before it is cut and gathered, and the purchaser shall be entitled to enter on
the land, and to do all that is necessary for the purpose of tending or cutting
or gathering the crop.
43. The property shall be sold by public
auction in one or more lots as the officer may consider advisable, and if the
amount to be realised by sale is satisfied by the sale of a portion of the
property, the sale shall be immediately stopped with respect to the remainder
of the lots.
44. (1) Where movable property is sold by
public auction, the price of each lot shall be paid at the time of sale or as
soon after as the officer holding the sale directs and in default of payment,
the property shall forthwith be resold.
(2) On payment of the purchase-money, the officer holding
the sale shall grant a certificate specifying the property purchased, the price
paid and the name of the purchaser, and the sale shall become absolute.
(3) Where the movable property to be sold is a share in
goods belonging to the defaulter and a co-owner, and two or more persons, of
whom one is such co-owner, respectively bid the same sum for such property or
for any lot, the bidding shall be deemed to be the bidding of the co-owner.
Irregularity not to vitiate sale, but
any person injured may sue.
45. No irregularity in publishing or
conducting the sale of movable property shall vitiate the sale, but any person
sustaining substantial injury by reason of such irregularity at the hand of
any other person may institute a suit in a civil court against him for
compensation, or (if such other person is the purchaser) for the recovery of
the specific property and for compensation in default of such recovery.
Negotiable instruments and shares in a
corporation.
46. Notwithstanding anything contained in
this Schedule, where the property to be sold is a negotiable instrument or a
share in a corporation, the Tax Recovery Officer may, instead of directing the
sale to be made by public auction, authorise the sale of such instrument or
share through a broker.
Order for payment of coin or currency
notes to the 94[14] [Assessing]
Officer.
47. Where the property attached is current
coin or currency notes, the Tax Recovery Officer may, at any time during the
continuance of the attachment, 95[15] [direct that such
coins or notes shall be credited to the Central Government and the amount so
credited shall be dealt with in the manner specified in rule 8].
Part III
Attachment and
Attachment
Attachment.
48. Attachment of the immovable property of
the defaulter shall be made by an order prohibiting the defaulter from
transferring or charging the property in any way and prohibiting all persons
from taking any benefit under such transfer or charge.
Service of notice of attachment.
49. A copy of the order of attachment shall
be served on the defaulter.
Proclamation of attachment.
50. The order of attachment shall be
proclaimed at some place on or adjacent to the property attached by beat of
drum or other customary mode, and a copy of the order shall be affixed on a
conspicuous part of the property and on the notice board of the office of the
Tax Recovery Officer.
Attachment to relate back from the date
of service of notice.
51. Where any immovable property is attached
under this Schedule, the attachment shall relate back to, and take effect from,
the date on which the notice to pay the arrears, issued under this Schedule,
was served upon the defaulter.
52. (1) The Tax Recovery Officer may direct
that any immovable property which has been attached, or such portion thereof as
may seem necessary to satisfy the certificate, shall be sold.
(2) Where any immovable property is ordered to be sold, the
Tax Recovery Officer shall cause a proclamation of the intended sale to be made
in the language of the district.
Contents of proclamation.
53. A proclamation of sale of immovable
property shall be drawn up after notice to the defaulter, and shall state the
time and place of sale, and shall specify, as fairly and accurately as
possible,—
(a) the
property to be sold;
(b) the
revenue, if any, assessed upon the property or any part thereof;
(c) the
amount for the recovery of which the sale is ordered; 96[16] [***]
97[17] [(cc) the
reserve price, if any, below which the property may not be sold; and]
(d) any
other thing which the Tax Recovery Officer considers it material for a
purchaser to know, in order to judge the nature and value of the property.
Mode of making proclamation.
54. (1) Every proclamation for the sale of
immovable property shall be made at some place on or near such property by beat
of drum or other customary mode, and a copy of the proclamation shall be affixed
on a conspicuous part of the property and also upon a conspicuous part of the
office of the Tax Recovery Officer.
(2) Where the Tax Recovery Officer so directs, such
proclamation shall also be published in the Official Gazette or in a local
newspaper, or in both; and the cost of such publication shall be deemed to be
costs of the sale.
(3) Where the property is divided into lots for the purpose
of being sold separately, it shall not be necessary to make a separate
proclamation for each lot, unless proper notice of the sale cannot, in the
opinion of the Tax Recovery Officer, otherwise be given.
Time of sale.
55. No sale of immovable property under this
Schedule shall, without the consent in writing of the defaulter, take place
until after the expiration of at least thirty days calculated from the date on
which a copy of the proclamation of sale has been affixed on the property or in
the office of the Tax Recovery Officer, whichever is later.
56. The sale shall be by public auction to
the highest bidder and shall be subject to confirmation by the Tax Recovery
Officer:
98[18] [Provided
that no sale under this rule shall be made if the amount bid by the highest
bidder is less than the reserve price, if any, specified under clause (cc) of rule 53.]
Deposit by purchaser and resale in
default.
57. (1) On every sale of immovable property,
the person declared to be the purchase shall pay, immediately after such
declaration, a deposit of twenty-five per cent on the amount of his purchase money,
to the officer conducting the sale; and, in default of such deposit, the
property shall forthwith be resold.
(2) The full amount of purchase money payable shall be paid
by the purchaser to the Tax Recovery Officer on or before the fifteenth day
from the date of the sale of the property.
Procedure in default of payment.
58. In default of payment within the period
mentioned in the preceding rule, the deposit may, if the Tax Recovery Officer
thinks fit, after defraying the expenses of the sale, be forfeited to the
Government, and the property shall be resold, and the defaulting purchaser
shall forfeit all claims to the property or to any part of the sum for which it
may subsequently be sold.
Authority to bid.
59. 99[19] [(1) Where the
sale of a property, for which a reserve price has been specified under clause (cc) of rule 53, has been postponed
for want of a bid of an amount not less than such reserve price, it shall be
lawful for an 1[20] [Assessing]
Officer, if so authorised by the 2[21] [Chief Commissioner
or Commissioner] in this behalf, to bid for the property on behalf of the
Central Government at any subsequent sale.]
3[22] [(2)] All persons
bidding at the sale shall be required to declare, if they are bidding on their
own behalf or on behalf of their principals. In the latter case, they shall be
required to deposit their authority, and in default their bids shall be rejected.
4[23] [(3) Where the 5[24] [Assessing]
Officer referred to in sub-rule (1) is declared to be the purchaser of the property
at any subsequent sale, nothing contained in rule 57 shall apply to the case
and the amount of the purchase price shall be adjusted towards the amount
specified in the certificate.]
Application to set aside sale of
immovable property on deposit.
60. (1) Where immovable property has been
sold in execution of a certificate, the defaulter, or any person whose
interests are affected by the sale, may, at any time within thirty days from
the date of the sale, apply to the Tax Recovery Officer to set aside the sale,
on his depositing—
6[25] (a) 7[26] [***] the amount
specified in the proclamation of sale as that for the recovery of which the
sale was ordered, with interest thereon at the rate of 8[27] [fifteen] per cent
per annum, calculated from the date of the proclamation of sale to the date
when the deposit is made; and
(b) for
payment to the purchaser, as penalty, a sum equal to five per cent of the
purchase money, but not less than one rupee.
(2) Where a person makes an application under rule 61 for
setting aside the sale of his immovable property, he shall not, unless he
withdraws that application, be entitled to make or prosecute an application
under this rule.
Application to set aside sale of
immovable property on ground of non-service of notice or irregularity.
61. Where immovable property has been sold in
execution of a certificate, 9[28] [such Income-tax
Officer as may be authorised by the Chief Commissioner or Commissioner in this
behalf], the defaulter, or any person whose interests are affected by the sale,
may, at any time within thirty days from the date of the sale, apply to the Tax
Recovery Officer to set aside the sale of the immovable property on the ground
that notice was not served on the defaulter to pay the arrears as required by
this Schedule or on the ground of a material irregularity in publishing or
conducting the sale:
Provided that—
(a) no
sale shall be set aside on any such ground unless the Tax Recovery Officer is
satisfied that the applicant has sustained substantial injury by reason of the
non-service of irregularity; and
(b) an
application made by a defaulter under this rule shall be disallowed unless the
applicant deposits the amount recoverable from him in the execution of the
certificate.
Setting aside sale where defaulter has
no saleable interest.
62. At any time within thirty days of the
sale, the purchaser may apply to the Tax Recovery Officer to set aside the sale
on the ground that the defaulter had no saleable interest in the property sold.
Confirmation of sale.
63. (1) Where no application is made for
setting aside the sale under the foregoing rules or where such an application
is made and disallowed by the Tax Recovery Officer, the Tax Recovery Officer
shall (if the full amount of the purchase money has been paid) make an order
confirming the sale, and, thereupon, the sale shall become absolute.
(2) Where such application is made and allowed, and where,
in the case of an application made to set aside the sale on deposit of the
amount and penalty and charges, the deposit is made within thirty days from the
date of the sale, the Tax Recovery Officer shall make an order setting aside
the sale:
Provided that no order
shall be made unless notice of the application has been given to the persons
affected thereby.
Return of purchase money in certain
cases.
64. Where a sale of immovable property is set
aside, any money paid or deposited by the purchaser on account of the purchase,
together with the penalty, if any, deposited for payment to the purchaser, and
such interest as the Tax Recovery Officer may allow, shall be paid to the
purchaser.
65. (1) Where a sale of immovable property
has become absolute, the Tax Recovery Officer shall grant a certificate
specifying the property sold, and the name of the person who at the time of
sale is declared to be the purchaser.
(2) Such certificate shall state the date on which the sale
became absolute.
Postponement of sale to enable defaulter
to raise amount due under certificate.
66. (1) Where an order for the sale of
immovable property has been made, if the defaulter can satisfy the Tax Recovery
Officer that there is reason to believe that the amount of the certificate may
be raised by the mortgage or lease or private sale of such property, or some
part thereof, or of any other immovable property of the defaulter, the Tax
Recovery Officer may, on his application, postpone the sale of the property
comprised in the order for sale, on such terms, and for such period as he
thinks proper, to enable him to raise the amount.
(2) In such case, the Tax Recovery Officer shall grant a
certificate to the defaulter, authorising him, within a period to be mentioned
therein, and notwithstanding anything contained in this Schedule, to make the
proposed mortgage, lease or sale:
Provided that all
moneys payable under such mortgage, lease or sale shall be paid, not to the
defaulter, but to the Tax Recovery Officer:
Provided also that no
mortgage, lease or sale under this rule shall become absolute until it has been
confirmed by the Tax Recovery Officer.
Fresh proclamation before re-sale.
67. Every re-sale of immovable property, in
default of payment of purchase money within the period allowed for such
payment, shall be made after the issue of a fresh proclamation in the manner
and for the period hereinbefore provided for the sale.
Bid of co-sharer to have preference.
68. Where the property sold is a share of
undivided immovable property, and two or more persons, of whom one is a
co-sharer, respectively bid the same sum for such property or for any lot, the
bid shall be deemed to be the bid of the co-sharer
10[29] [Acceptance
of property in satisfaction of amount due from the defaulter.
68A. (1) Without prejudice to the provisions
contained in this Part, an 11[30] [Assessing]
Officer, duly authorised by the 12[31] [Chief
Commissioner or Commissioner] in this behalf, may accept in satisfaction of
the whole or any part of the amount due from the defaulter the property, the
sale of which has been postponed for the reason mentioned in sub-rule (1) of
rule 59, at such price as may be agreed upon between the 11[32] [Assessing]
Officer and the defaulter.
(2) Where any property is accepted under sub-rule (1), the
defaulter shall deliver possession of such property to the 11[33] [Assessing]
Officer and on the date the possession of the property is delivered to the 11[34] [Assessing]
Officer, the property shall vest in the Central Government and the Central
Government shall, where necessary, intimate the concerned Registering Officer
appointed under the Registration Act, 1908 (16 of 1908), accordingly.
(3) Where the price of the property agreed upon under sub-rule
(1) exceeds the amount due from the defaulter, such excess shall be paid by the
11[35] [Assessing]
Officer to the defaulter within a period of three months from the date of
delivery of possessing of the property and where the 11[36] [Assessing]
Officer fails to pay such excess within the period aforesaid, the Central
Government shall, for the period commencing on the expiry of such period and
ending with the date of payment of the amount remaining unpaid, pay simple
interest at twelve per cent per annum to the defaulter on such amount.]
13[37] [Time
limit for sale of attached immovable property.
68B. (1)
No sale of immovable property shall be made under this Part after the expiry of
three years from the end of the financial year in which the order giving rise
to a demand of any tax, interest, fine, penalty or any other sum, for the
recovery of which the immovable property has been attached, has become conclusive
under the provisions of section 245-I or, as the case may be, final in terms of
the provisions of Chapter XX:
Provided that where the immovable property is
required to be re-sold due to the amount of highest bid being less than the
reserve price or under the circumstances mentioned in rule 57 or rule 58 or
where the sale is set aside under rule 61, the aforesaid period of limitation
for the sale of the immovable property shall stand extended by one year.
(2) In computing the period of
limitation under sub-rule (1), the period—
(i) during which the levy of the aforesaid
tax, interest, fine, penalty or any other sum is stayed by an order or injunction
of any court; or
(ii) during which the proceedings of
attachment or sale of the immovable property are stayed by an order or injunction
of any court; or
(iii) commencing from the date of the
presentation of any appeal against the order passed by the Tax Recovery Officer
under this Schedule and ending on the day the appeal is decided,
shall be excluded:
Provided that where immediately after the exclusion
of the aforesaid period, the period of limitation for the sale of the immovable
property is less than 180 days, such remaining period shall be extended to 180
days and the aforesaid period of limitation shall be deemed to be extended
accordingly.
(3) Where any immovable property
has been attached under this Part before the 1st day of June, 1992, and the
order giving rise to a demand of any tax, interest, fine, penalty or any other
sum, for the recovery of which the immovable property has been attached, has
also become conclusive or final before the said date, that date shall be deemed
to be the date on which the said order has become conclusive or, as the case
may be, final.
(4) Where the sale of immovable property
is not made in accordance with the provisions of sub-rule (1), the attachment
order in relation to the said property shall be deemed to have been vacated on
the expiry of the time of limitation specified under this rule.]
Part IV
Appointment of Receiver
Appointment of receiver for business.
69. (1) Where the property of a defaulter
consists of a business, the Tax Recovery Officer may attach the business and
appoint a person as receiver to manage the business.
(2) Attachment of a business under this rule shall be made
by an order prohibiting the defaulter from transferring or charging the
business in any way and prohibiting all persons from taking any benefit under
such transfer or charge, and intimating that the business has been attached
under this rule. A copy of the order of attachment shall be served on the
defaulter, and another copy shall be affixed on a conspicuous part of the
premises in which the business is carried on and on the notice board of the
office of the Tax Recovery Officer.
Appointment of receiver for immovable
property.
70. Where immovable property is attached, the
Tax Recovery Officer may, instead of directing a sale of the property, appoint
a person as receiver to manage such property.
Powers of receiver.
71. (1) Where any business or other property
is attached and taken under management under the foregoing rules, the receiver
shall, subject to the control of the Tax Recovery Officer, have such powers as
may be necessary for the proper management of the property and the realisation
of the profits, or rents and profits, thereof.
(2) The profits, or rents and profits, of such business or
other property, shall, after defraying the expenses of management be adjusted
towards discharge of the arrears, and the balance, if any, shall be paid to the
defaulter.
Withdrawal of management.
72. The attachment and management under the
foregoing rules may be withdrawn at any time at the discretion of the Tax
Recovery Officer, or if the arrears are discharged by receipt of such profits
and rents or are otherwise paid.
Part V
Arrest and
Detention of the Defaulter
Notice to show cause.
73. (1) No order for the arrest and detention
in civil prison of a defaulter shall be made unless the Tax Recovery Officer
has issued and served a notice upon the defaulter calling upon him to appear
before him on the date specified in the notice and to show cause why he should
not be committed to the civil prison, and unless the Tax Recovery Officer, for
reasons recorded in writing, is satisfied—
(a) that
the defaulter, with the object or effect of obstructing the execution of the
certificate, has, after 14[38] [the drawing up
of the certificate by the Tax Recovery Officer], dishonestly transferred,
concealed, or removed any part of his property, or
(b) that
the defaulter has, or has had since 14[39] [the drawing up
of the certificate by the Tax Recovery Officer], the means to pay the arrears
or some substantial part thereof and refuses or neglects or has refused or
neglected to pay the same.
(2) Notwithstanding anything contained in sub-rule (1), a
warrant for the arrest of the defaulter may be issued by the Tax Recovery
Officer if the Tax Recovery Officer is satisfied, by affidavit or otherwise,
that with the object or effect of delaying the execution of the certificate,
the defaulter is likely to abscond or leave the local limits of the
jurisdiction of the Tax Recovery Officer.
(3) Where appearance is not made in obedience to a notice
issued and served under sub-rule (1), the Tax Recovery Officer may issue a
warrant for the arrest of the defaulter.
15[40] [(3A) A warrant
of arrest issued by a Tax Recovery Officer under sub-rule (2) or sub-rule (3)
may also be executed by any other Tax Recovery Officer within whose jurisdiction
the defaulter may for the time being be found.]
(4) Every person arrested in pursuance of a warrant of
arrest under 16[41] [this rule] shall
be brought before the Tax Recovery Officer 15[42] [issuing the
warrant] as soon as practicable and in any event within twenty-four hours of
his arrest (exclusive of the time required for the journey):
Provided that, if the
defaulter pays the amount entered in the warrant of arrest as due and the costs
of the arrest to the officer arresting him, such officer shall at once release
him.
15[43] [Explanation : For the purposes of
this rule, where the defaulter is a Hindu undivided family, the karta thereof
shall be deemed to be the defaulter.]
Hearing.
74. When a defaulter appears before the Tax
Recovery Officer in obedience to a notice to show cause or is brought before
the Tax Recovery Officer under rule 73, the 17[44] [the Tax Recovery
Officer shall give the defaulter] an opportunity of showing cause why he should
not be committed to the civil prison.
Custody pending hearing.
75. Pending the conclusion of the inquiry,
the Tax Recovery Officer may, in his discretion, order the defaulter to be detained
in the custody of such officer as the Tax Recovery Officer may think fit or
release him on his furnishing security to the satisfaction of the Tax Recovery
Officer for his appearance when required.
Order of detention.
76. (1) Upon the conclusion of the inquiry,
the Tax Recovery Officer may make an order for the detention of the defaulter
in the civil prison and shall in that event cause him to be arrested if he is
not already under arrest:
Provided that in order
to give the defaulter an opportunity of satisfying the arrears, the Tax
Recovery Officer may, before making the order of detention, leave the defaulter
in the custody of the officer arresting him or of any other officer for a
specified period not exceeding 15 days, or release him on his furnishing
security to the satisfaction of the Tax Recovery Officer for his appearance at
the expiration of the specified period if the arrears are not so satisfied.
(2) When the Tax Recovery Officer does not make an order of
detention under sub-rule (1) he shall, if the defaulter is under arrest, direct
his release.
Detention in and release from prison.
77. (1) Every person detained in the civil
prison in execution of a certificate may be so detained,—
(a) where
the certificate is for a demand of an amount exceeding two hundred and fifty
rupees—for a period of six months, and
(b) in
any other case—for a period of six weeks:
Provided that he shall
be released from such detention—
(i) on
the amount mentioned in the warrant for his detention being paid to the
officer-in-charge of the civil prison, or
18[45] [(ii) on
the request of the Tax Recovery Officer on any ground other than the grounds
mentioned in rules 78 and 79.]
(2) A defaulter released from detention under this rule
shall not, merely by reason of his release, be discharged from his liability
for the arrears; but he shall not be liable to be rearrested under the
certificate in execution of which he was detained in the civil prison.
Release.
78. (1) The Tax Recovery Officer may order the
release of a defaulter who has been arrested in execution of a certificate upon
being satisfied that he has disclosed the whole of his property and has placed
it at the disposal of the Tax Recovery Officer and that he has not committed
any act of bad faith.
(2) If the Tax Recovery Officer has ground for believing
the disclosure made by a defaulter under sub-rule (1) to have been untrue, he
may order the rearrest of the defaulter in execution of the certificate, but
the period of his detention in the civil prison shall not in the aggregate
exceed that authorised by rule 77.
Release on ground of illness.
79. (1) At any time after a warrant for the
arrest of a defaulter has been issued, the Tax Recovery Officer, may cancel it
on the ground of his serious illness.
(2) Where a defaulter has been arrested, the Tax Recovery
Officer may release him if, in the opinion of the Tax Recovery Officer, he is
not in a fit state of health to be detained in the civil prison.
(3) Where a defaulter has been committed to the civil
prison, he may be released therefrom by the Tax Recovery Officer on the ground
of the existence of any infectious or contagious disease, or on the ground of
his suffering from any serious illness.
(4) A defaulter release under this rule may be rearrested,
but the period of his detention in the civil prison shall not in the aggregate
exceed that authorised by rule 77.
Entry into dwelling house.
80. For the purpose of making an arrest under
this Schedule—
(a) no
dwelling house shall be entered after sunset and before sunrise;
(b) no
outer door of a dwelling house shall be broken open unless such dwelling house
or a portion thereof is in the occupancy of the defaulter and he or other
occupant of the house refuses or in any way prevents access thereto; but, when
the person executing any such warrant has duly gained access to any dwelling
house, he may break open the door of any room or apartment if he has reason to
believe that the defaulter is likely to be found there;
(c) no
room, which is in the actual occupancy of a woman who, according to the customs
of the country, does not appear in public, shall be entered into unless the
officer authorised to make the arrest has given notice to her that she is at
liberty to withdraw and has given her reasonable time and facility for
withdrawing.
Prohibition against arrest of women or
minors, etc.
81. The Tax Recovery Officer shall not order
the arrest and detention in the civil prison of—
(a) a
woman, or
(b) any
person who, in his opinion, is a minor or of unsound mind.
Part VI
Miscellaneous
Officers deemed to be acting judicially.
82. Every 20[47] [Chief
Commissioner or Commissioner], Tax Recovery Officer or other officer acting
under this Schedule shall, in the discharge of his functions under this
Schedule, be deemed to be acting judicially within the meaning the Judicial
Officers Protection Act, 1850 (18 of 1850).
Power to take evidence.
83. Every 21[48] [Chief
Commissioner or Commissioner], Tax Recovery Officer or other officer acting
under the provisions of this Schedule shall have the powers of a civil court
while trying a suit for the purpose of receiving evidence, administering oaths,
enforcing the attendance of witnesses and compelling the production of
documents.
Continuance of certificate.
84. No certificate shall cease to be in force
by reason of the death of the defaulter.
Procedure on death of defaulter.
85. 22[49] [If at any time
after the certificate is drawn up by the Tax Recovery Officer] the defaulter
dies, the proceedings under this Schedule (except arrest and detention) may be
continued against the legal representative of the defaulter, and the provisions
of this Schedule shall apply as if the legal representative were the defaulter.
Appeals.
86. 23[50] [(1) An appeal
from any original order passed by the Tax Recovery Officer under this Schedule,
not being an order which is conclusive, shall lie to the Chief Commissioner or
Commissioner.]
(2) Every appeal under this rule must be presented within
thirty days from the date of the order appealed against.
(3) Pending the decision of any appeals, execution of the
certificate may be stayed if the appellate authority so directs, but not
otherwise.
24[51] [(4) Notwithstanding
anything contained in sub-rule (1), where a Chief Commissioner or Commissioner
is authorised to exercise powers as such in respect of any area, then, all
appeals against the orders passed before the date of such authorisation by any
Tax Recovery Officer authorised to exercise powers as such in respect of that
area, or an area which is included in that area, shall lie to such Chief
Commissioner or Commissioner.]
Review.
87. Any order passed under this Schedule may,
after notice to all persons interested, be reviewed by the 25[52] [Chief
Commissioner or Commissioner], Tax Recovery Officer or other officer who made
the order, or by his successor in office, on account of any mistake apparent
from the record.
Recovery from surety.
88. Where any person has under this Schedule
become surety for the amount due by the defaulter, he may be proceeded against
under this Schedule as if he were the defaulter.
Penalties.
89. 26[53] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
Subsistence allowance.
90. (1) When a defaulter is arrested or
detained in the civil prison, the sum payable for the subsistence of the
defaulter from the time of arrest until he is released shall be borne by the 27[54] [Tax Recovery
Officer.]
(2) Such sum shall be calculated on the scale fixed by the
State Government for the subsistence of judgment-debtors arrested in execution
of a decree of a civil court.
(3) Sums payable under this rule shall be deemed to be
costs in the proceeding:
Provided that the
defaulter shall not be detained in the civil prison or arrested on account of
any sum so payable.
Forms.
91. The Board may prescribe the form to be
used for any order, notice, warrant, or certificate to be issued under this
Schedule.
Power to make rules.
92. (1) The Board may make rules, consistent
with the provisions of this Act, regulating the procedure to be followed by 28[55] [Chief
Commissioners, Commissioners], Tax Recovery Officers and other officers acting
under this Schedule.
(2) In particular, and without prejudice to the generality
of the power conferred by sub-rule (1), such rules may provide for all or any
of the following matters, namely:—
(a) the area within which 28[56] [Chief
Commissioners, Commissioners] or Tax Recovery Officers may exercises
jurisdiction;
(b) the
manner in which any property sold under this Schedule may be delivered;
(c) the
execution of a document or the endorsement of a negotiable instrument or a
share in a corporation, by or on behalf of the Tax Recovery Officer where such
execution or endorsement is required to transfer such negotiable instrument or
share to a person who has purchased it under a sale under this Schedule;
(d) the
procedure for dealing with resistance or obstruction offered by any person to a
purchaser of any immovable property sold under this Schedule, in obtaining
possession of the property;
(e) the
fees to be charged for any process issued under this Schedule;
(f) the
scale of charges to be recovered in respect of any other proceeding taken under
this Schedule;
(g) recovery
of poundage fee;
(h) the
maintenance and custody, while under attachment, of livestock or other movable
property, the fees to be charged for such maintenance and custody, the sale of
such livestock or property, and the disposal of proceeds of such sale;
(i) the
mode of attachment of business.
Saving regarding charge.
93. Nothing in this Schedule shall affect any
provisions of this Act where under the tax is a first charge upon any asset.
29[57] [Continuance
of certain pending proceedings and power to remove difficulties.
94. All proceedings for the recovery of tax
pending immediately before the coming into force of the amendments to this
Schedule by the Direct Tax Laws (Amendment) Act, 1987 shall be continued under
this Schedule as amended by that Act from the stage they had reached, and, for
this purpose, every certificate, issued by the 30[58] [Assessing]
Officer under section 222 before such amendment shall be deemed to be a
certificate drawn up by the Tax Recovery Officer under that section after such
amendment, and if any difficulty arises in continuing the said proceedings, the
Board may issue (whether by way of modification, not affecting the substance of
any rule in this Schedule or otherwise) general or special orders which appear
to it to be necessary or expedient for the purpose of removing the difficulty.]
[1]Substituted for “See section 222” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1989.
[2]Substituted for the following by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f.1-4-1989:
‘(a) “certificate” means a certificate
received by the Tax Recovery Officer from the *Assessing Officer for the
recovery of arrears under this Schedule:
*Substituted for “Income-tax”, ibid., with retrospective effect from 1-4-1988.
[3]Substituted for “When a certificate has been received
by the Tax Recovery Officer from the *Assessing Officer” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid., with retrospective effect from 1-4-1988.
[4]Substituted for the following by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f.1-4-1989:
“8. Disposal of proceeds of execution.—(1)
Whenever assets are realised, by sale or otherwise in execution of a
certificate, they shall be disposed of in the following manner:—
(a) there shall first be paid to the
*Assessing Officer the costs incurred by him:
(b) there shall, in the next place, be
paid to the *Assessing Officer the amount due under the certificate in
execution of which the assets were realised;
(c) if there remains a balance after these
sums have been paid, there shall be paid to the *Assessing Officer therefrom
any other amount recoverable under the procedure provided by this Act which may
be due upon the date upon which the assets were realised; and
(d) the balance (if any) remaining
after the payment of the amount (if any) referred to in clause (c) shall be paid to the defaulter.
(2)
If the defaulter disputes any claim made by the *Assessing Officer to receive
any amount referred to in clause (c),
the Tax Recovery Officer shall determine the dispute.”
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with Retrospective effect from 1-4-1988.
[5]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid with retrospective effect from 1-4-1988.
[6]“duly filed under this Act” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[7]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid., with retrospective effect from 1-4-1988.
[8]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to the substitution, rule 19A, as inserted by the
Finance Act, 1963, with retrospective effect from 1-4-1962 and later on amended
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975, stood as under:
“19A.
Entrustment of certain functions by
Collector or Additional Collector.—(1) A Tax Recovery Officer, being a
Gazetted Officer of the Central Government, who is authorised to exercise the
powers of a Tax Recovery Officer under this Act, may entrust any of his
functions as Tax Recovery Officer to any other officer lower than him in rank
(not being lower in rank than an Inspector of Income-tax) and such officer
shall, in relation to the functions so entrusted to him, by deemed to be a Tax
Recovery Officer:
Provided that where the Tax Recovery Officer is an Income-tax
Officer any entrustment under this sub-rule shall be made only with the approval
of the Deputy Commissioner.
(2) A Tax Recovery Officer, being a Collector or an additional Collector, may, subject to the approval of the State Government, entrust any of his functions as Tax Recovery Officer to any other officer lower than him in rank who is empowered to effect recovery of arrears of land revenue or other public demand under any law relating to land revenue or other public demand for the time being in force in the State and such officer shall, in relation to functions so entrusted to him, be deemed to be a Tax Recovery Officer.”
[9]Substituted for “and the *Assessing Officer shall bear such sum as the Tax Recovery
Officer shall require in order to defray the cost of such arrangements” by the
Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid., w.r.e.f. 1-4-1988.
[10]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid., w.r.e.f. 1-4-1988.
[11]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid., w.r.e.f. 1-4-1988.
[12]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid., w.r.e.f. 1-4-1988.
[13]Substituted for “*Assessing” by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid., with retrospective effect from 1-4-1988.
[14]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[15]Substituted for “direct that such coins or notes, or a
part thereof sufficient to satisfy the certificate, be paid over to the
*Assessing Officer” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
*Substituted for “Income-tax”, ibid., with retrospective effect from 1-4-1988.
[16]“and” omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[17]Inserted, ibid.
[18]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[19]Inserted, ibid.
[20]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[21]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.
[22]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[23]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[24]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[25]See rule 119A.
[26]“For payment to the
*Assessing Officer” omitted by the
Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid. with retrospective effect from 1-4-1988.
[27]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984; section 84 of the Amendment Act has clarified that the increase in the rate of interest will apply in respect of any period falling after 30-9-1984 and also in cases where the interest became chargeable or payable from an earlier date. Earlier, “twelve” was substituted for “nine” by the Finance Act, 1972, w.e.f. 1-4-1972 and “nine” was substituted for “six” by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[28]Substituted for “*Assessing
Officer” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid. with retrospective effect from 1-4-1988.
[29]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[30]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.
[31]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[32]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[33]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[34]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[35]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[36]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[37]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992.
[38]Substituted for “the receipt of the certificate in the office of the Tax Recovery Officer” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[39]Substituted for “the receipt of the certificate in the office of the Tax Recovery Officer” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[40]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[41]Substituted for “sub-rule (2) or sub-rule (3)”, ibid.
[42]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[43]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[44]Substituted for “the Tax Recovery Officer shall proceed
to hear the *Assessing Officer
and take all such evidence as may be produced by him in support of execution by
arrest, and shall then give the defaulter” by the Direct Tax Laws (Amendment)
Act, 1989, w.e.f.1-4-1989.
*Substituted for “Income-tax”, ibid. with retrospective effect from 1-4-1988.
[45]Substituted for the following by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f.1-4-1989:
“(ii) on the request of the *Assessing Officer who has issued the
certificate or of the Tax Recovery Officer or any ground other than the grounds
mentioned in rules 78 and 79.”
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f.1-4-1988.
[46]Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. Prior to its omission, proviso, as amended by the Direct Tax
Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988, stood as
under:
“Provided
that where he is to be released on the request of the *Assessing Officer, he shall not so be released without the order
of the Tax Recovery Officer.”
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[47]Substituted for “Tax Recovery Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier it was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972.
[48]Substituted, ibid.
[49]Substituted for “If at any time after the issue of the
certificate by the *Assessing
Officer to the Tax Recovery Officer” by the Direct Tax Laws (Amendment) Act,
1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax”, ibid. with retrospective effect from 1-4-1988.
[50]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution, rule 86, as substituted by
the Finance Act, 1963, with retrospective effect from 1-4-1962 and again by the
Finance ( No. 2) Act, 1971, w.e.f. 1-1-1972, stood as under:
“(1)
An appeal from any original order passed by the Tax Recovery Officer under this
Schedule, not being an order which is conclusive, shall lie—
(a) in the case of a Tax Recovery
Officer, being a Collector or an Additional Collector, to the revenue
authority to which appeals ordinarily lie against the orders of the Collector
under the law relating to land revenue of the State concerned;
(b) in the case of a Tax Recovery
Officer, being an officer referred to in sub-clause (ii) of clause (44)
of section 2, to the revenue authority to which an appeal or an application for
revision would ordinarily lie, if the order passed by him were the order under
the law relating to land revenue or other public demand for the time being in
force in the State concerned; and
(c) in the case of a Tax Recovery Officer, being an officer referred to in sub-clause (iii) of clause (44) of section 2, to the Tax Recovery Commissioner.”
[51]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution, sub-section (4), as inserted
by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972, stood as under:
“(4)
Notwithstanding anything contained in sub-rule (1), where a Tax Recovery
Commissioner is authorised to exercise powers as such in respect of any area,
then,—
(a) all appeals against the orders
passed before the date of such authorisation by any Tax Recovery Officer
authorised to exercise powers as such in respect of that area or an area which
is included in that area, shall lie to such Tax Recovery Commissioner; and
(b) any proceeding by way of appeal against any orders referred to in clause (a) pending on the date mentioned in that clause before an appellate authority referred to in clause (a) or clause (b) of sub-rule (1) shall stand transferred to such Tax Recovery Commissioner for disposal.”
[52]Substituted for “Tax Recovery Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier it was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972.
[53]Prior to its omission, rule 89 stood as under:
“Whoever fraudulently removes, conceals, transfers or delivers to any person any property or any interests therein, intending thereby to prevent that property or interest therein, from being taken in execution of a certificate, shall be deemed to have committed an offence punishable under section 206 of the Indian Penal Code (45 of 1860).”
[54]Substituted for “*Assessing Officer” by the Direct Tax Laws (Amendment) Act, 1989,
w.e.f. 1-4-1989.
*Substituted
for “Income-tax”, ibid.,
with retrospective effect from 1-4-1988.
28. Substituted for “Tax Recovery Commissioners” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier it was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972.
[55]Substituted for “Tax Recovery Commissioners” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier it was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972.
[56]Substituted for “Tax Recovery Commissioners” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier it was inserted by the Finance (No. 2) Act, 1971, w.e.f. 1-1-1972.
[57]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[58]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.