THE SECOND SCHEDULE
PROCEDURE FOR RECOVERY OF TAX
46[R1] [[See
sections 222 and 276]]
GENERAL
PROVISIONS
Definitions.
1. In
this Schedule, unless the context otherwise requires,—
47[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 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. 48[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
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 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 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 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.
49[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
50[R5] [Tax Recovery] Officer and the defaulter or
their representatives, relating to the execution, discharge or satisfaction of
a certificate 51[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 possessed52[R7] 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 costs 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 persons 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 53[R8] [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 arrears 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 property54 [R9] 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.
55[R10] [Entrustment
of certain functions by Tax Recovery Officer.
19A. A Tax
Recovery Officer may, with the previous approval of the 56[R11] [Joint]
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.]
ATTACHMENT AND SAlE OF MOVABLE PROPERTY
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; 57[R12] [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, 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 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 58[R13] [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 58[R14] [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 58[R15] [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 for 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 59[R16] [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.
Sale
Sale.
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.
Sale after fifteen days.
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.
Sale of agricultural produce.
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
gathered 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.
Sale to be by auction.
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.
Sale by public auction.
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 60[R17] [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, 61[R18] [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].
attachment and sale of immovable property
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.
Sale
Sale and proclamation of sale.
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; 62[R19] [***]
63[R20] [(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.
Sale to be by auction.
56. The
sale shall be by public auction to the highest bidder and shall be subject to
confirmation by the Tax Recovery Officer:
64[R21] [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. 65[R22] [(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 66[R23] [Assessing]
Officer, if so authorised by the 67[R24] [Chief
Commissioner or Commissioner] in this behalf, to bid for the property on behalf
of the Central
Government at any subsequent sale.]
68[R25] [(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.
69[R26] [(3) Where the 66[R27] [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—
70[R28] (a) 71[R29] [***]
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 72[R30] [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, 73[R31]
[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.
Sale certificate.
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.
74[R32] [Acceptance
of property in satisfaction of amount due from the defaulter.
68A. (1) Without prejudice to
the provisions contained
in this Part,
an 75[R33] [Assessing]
Officer, duly authorised by the 76[R34] [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 75[R35] [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 77[R36] [Assessing]
Officer and on the date the possession of the property is delivered to the 77[R37] [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
77[R38] [Assessing]
Officer to the defaulter within a period of three months from the date of
delivery of possession of the property and where the 77[R39] [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 78[R40] [six] per cent per annum
to the defaulter on such amount.]
79[R41] [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 years80[R42]
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 circumstan-ces 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.]
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.
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 81[R43] [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 81[R44] [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.
82[R45] [(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 83[R46] [this
rule] shall be brought before the Tax Recovery Officer 84[R47] [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.
84[R48] [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, 85[R49] [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
86[R50] [(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
88[R52] [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 89[R53] [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. 90[R54] [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. 91[R55] [(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.
92[R56] [(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 93[R57] [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. 94[R58] [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 95[R59] [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 96[R60] [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 96[R61] [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 provision of this Act whereunder
the tax is a first charge upon any asset.
97[R62] [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 98[R63] [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
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989, for the following :
‘(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” by the Direct Tax Laws (Amendment) Act, 1989, 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, w.r.e.f. 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” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, w.r.e.f. 1-4-1988.
[R6]Words “duly filed under this Act” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R7]For the meaning of the term “possessed”
[R8]Substituted
for “*Assessing” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, w.r.e.f. 1-4-1988
[R9]For the meaning of the expression “otherwise deal with any property”
[R10]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.”
[R11]Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R12]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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R14]Substituted
for “*Assessing” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R15]Substituted
for “*Assessing” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R16]Substituted
for “*Assessing” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R17]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R18]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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R19]Word “and” omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R20]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R21]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R22]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-10-1975.
[R23]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R24]Substituted
for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R25]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R26]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R27]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R28]See rule 119A.
[R29]Words “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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R30]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
[R31]Substituted
for “*Assessing Officer” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R32]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R33]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988
[R34]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R35]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, with retrospective effect from 1-4-1988
[R36]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R37]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988
[R38]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R39]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R40]Substituted by the Taxation Laws (Amdt.) Act, 2003 w.r.e.f. 8-9-2003. Earlier it was substituted for “nine” by the Finance Act, 2002, w.e.f. 1-6-2002.Earliear “nine” was substituted for “twelve” by the Finance Act, 2001, w.e.f. 1-6-2001
[R41]Substituted by the Taxation Laws (Amdt.) Act, 2003 w.r.e.f. 8-9-2003. Earlier it was substituted for “nine” by the Finance Act, 2002, w.e.f. 1-6-2002.Earliear “nine” was substituted for “twelve” by the Finance Act, 2001, w.e.f. 1-6-2001
[R42]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.
[R43]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.
[R44]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.
[R45]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R46]Substituted for “sub-rule (2) or sub-rule (3)” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975
[R47]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-10-1975.
[R48]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R49]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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R50]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.
[R51]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, w.r.e.f. 1-4-1988
[R52]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
[R53]Substituted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R54]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” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R55]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, w.r.e.f. 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 a 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.”
[R56]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.”
[R57]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.
[R58]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).”
[R59]Substituted for “*Assessing
Officer” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989.
*Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[R60]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.
[R61]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.
[R62]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R63]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988