The Second
Schedule
Procedure
for recovery of tax
43[R1] [[See sections 222 and 276]]
Part I
General
provisions
Definitions.
1. In this Schedule, unless the context,
otherwise requires,—
44[R2] [(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 proper7ty’ 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. 45[R3] [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 steps 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 whole 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 an 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 therein 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 processes, 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 purchase 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 someone 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 that 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.
46[R4] [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 47[R5] [Tax Recovery] Officer and the defaulter or their
representatives, relating to the execution, discharge or satisfaction of a
certificate 48[R6] [***], 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
releasing 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.
Removal 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
expense, 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 49[R7] [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 than 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.
50[R8] [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 this 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 his 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 is
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 is
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; 51[R9] [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 severed
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, makes 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 to 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 52[R10] [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 52[R11] [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
53[R12] [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 53[R13] [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 54[R14] [Assessing] Officer.
47. Where the property attached is current
coin or currency notes, the Tax Recovery Officer may, at any time during he continuance
of the attachment, 55[R15] [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; 56[R16] [***]
57[R17] [(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 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:
58[R18] [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 purchaser 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. 59[R19] [(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 60[R20] [Assessing]
Officer, if so authorised by the 61[R21] [Chief
Commissioner or Commissioner] in this behalf, to bid for the property on behalf
of the Central Government at any subsequent sale.]
62[R22] [(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.
63[R23] [(3) Where the 60[R24] [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—
64[R25] (a) 65[R26] [***] 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 66[R27] [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, 67[R28] [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 or 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 the 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.
68[R29] [Acceptance
of property in satisfaction of amount due from the defaulter.
68A. (1) Without prejudice to the provisions
contained in this Part, an 69[R30] [Assessing]
Officer, duly authorised by the 70[R31] [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 reasons mentioned in sub-rule (1) of rule
59, at such price as may be agreed upon between the 69[R32] [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 70a[R33] [Assessing]
Officer and on the date the possession of the property is delivered to the 70a[R34] [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 70a[R35] [Assessing]
Officer to the defaulter within a period of three months from the date of
delivery of possession of the property and where the 70a[R36] [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.]
71[R37] [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 years71a [R38] 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 provision 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 72[R39] [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 72[R40] [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.
73[R41] [(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 74[R42] [this rule] shall
be brought before the Tax Recovery Officer 75[R43] [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.
75[R44] [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 76[R45] [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
77[R46] [(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 released 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 79[R48] [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 of the Judicial
Officers Protection Act, 1850 (18 of 1850).
Power to take evidence.
83. Every 80[R49] [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. 81[R50] [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 representatives were the
defaulter.
Appeals.
86. 82[R51] [(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 appeal, execution of the certificate may be stayed if the
appellate authority so directs, but not otherwise.
83[R52] [(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 84[R53] [Chief Commissioner
or Commissioner], Tax Recovery Officer or other officer who made the order, or
by his successors 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. 85[R54] [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 86[R55] [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 87[R56] [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 87[R57] [Chief
Commissioners, Commissioners] or Tax Recovery Officers may exercise
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 whereunder the tax is a first
charge upon any asset.
88[R58] [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 89[R59] [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.]
[R1]Substituted for “[See section 222]” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R2]Substituted for the following, ibid:
‘(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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R3]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.r.e.f. 1-4-1988.
*Substituted for “Income-tax”, ibid., w.r.e.f. 1-4-1988.
[R4]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.
[R5]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.
[R6]“duly filed under this Act” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R7]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.
[R8]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, be 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.”
[R9]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 arrangement” 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.
[R10]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.
[R11]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.
[R12]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.
[R13]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.
[R14]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[R15]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.
[R16]“and” omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R17]Inserted, ibid.
[R18]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R19]Inserted, by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R20]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[R21]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R22]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R23]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R24]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[R25]See rule 119A.
[R26]“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.
[R27]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.
[R28]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.
[R29]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R30]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[R31]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R32]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988.
[R33]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R34]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R35]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R36]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R37]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992.
[R38]Period is extended to 4 years, see Notification No. 9995 [F.No. 275/138/95-IT(B)], dated 1-3-1996. For Details, see Income-tax Act.
[R39]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
[R40]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.
[R41]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R42]Substituted for “sub-rule (2) or sub-rule (3)”, ibid.
[R43]Inserted, ibid
[R44]Inserted, ibid.
[R45]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.
[R46]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.
[R47]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.
[R48]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.
[R49]Substituted, ibid.
[R50]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.
[R51]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.”
[R52]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.”
[R53]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.
[R54]Prior to its omission, rule 89 stood as under:
“Whoever fraudulently removes, conceals, transfers or delivers to any person any property or any interest 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).”
[R55]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.
[R56]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.
[R57]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.
[R58]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R59]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.