THE SECOND SCHEDULE
PROCEDURE FOR RECOVERY OF TAX
[1] [[See
sections 222 and 276]]
PART I
GENERAL PROVISIONS
1. Definitions:-
In this Schedule, unless
the context otherwise requires,—
[2] [(a) "Certificate",
except in rules 7, 44, 65 and sub-rule (2) of rule 66, means the certificate
drawn up by the Tax Recovery Officer under section 222 in respect of any
assessee referred to in that section;]
(b) "Defaulter"
means the assessee mentioned in the certificate;
(c) "Execution", in relation to a
certificate, means recovery of arrears in pursuance of the certificate;
(d) "Movable
property" includes growing crops;
(e) "Officer"
means a person authorised to make an attachment or sale under this Schedule;
(f) "Rule"
means a rule contained in this Schedule; and
(g) "Share in a
corporation" includes stock, debenture-stock, debentures or bonds.
2.
Issue of notice:-
[3] [When a certificate has been drawn up by the Tax Recovery Officer]
for the recovery of arrears under this Schedule, the Tax Recovery Officer shall
cause to be served upon the defaulter a notice requiring the defaulter to pay
the amount specified in the certificate within fifteen days from the date of
service of the notice and intimating that in default steps would be taken to
realise the amount under this Schedule.
3.
When certificate may be executed:-
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.
4.
Mode of recovery:-
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.
5.
Interest, costs and charges recoverable:-
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.
6.
Purchaser's title:-
(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.
7.
Suit against purchaser not maintainable on ground of purchase being made on
behalf of plaintiff:-
(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.
[4] [8. Disposal of proceeds of execution:-
(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.]
9.
General bar to jurisdiction of civil courts, save where fraud alleged:-
Except as otherwise
expressly provided in this Act, every question arising between the [5] [Tax Recovery] Officer and the defaulter or their
representatives, relating to the execution, discharge or satisfaction of a
certificate [6] [* * *], or relating to the confirmation or setting aside by
an order under this Act of a sale held in execution of such certificate, shall
be determined, not by suit, but by order of the Tax Recovery Officer before
whom such question arises:
Provided
that a suit may be brought in a civil court in respect of any such question
upon the ground of fraud.
10.
Property exempt from attachment:-
(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.
11.
Investigation by Tax Recovery Officer:-
(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.
12. Removal
of attachment on satisfaction or cancellation of certificate:-
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.
13.
Officer entitled to attach and sell:-
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.
14.
Defaulting purchaser answerable for loss on resale:-
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 [7] [Tax Recovery] Officer or the defaulter, be recoverable
from the defaulting purchaser under the procedure provided by this Schedule:
Provided
that no such application shall be entertained unless filed within fifteen days
from the date of resale.
15.
Adjournment or stoppage of sale:-
(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.
16.
Private alienation to be void in certain cases:-
(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.
17.
Prohibition against bidding or purchase by officer:-
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.
18.
Prohibition against sale on holidays:-
No sale under this Schedule
shall take place on a Sunday or other general holiday recognized 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.
19.
Assistance by police:-
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.
[8] [19A. Entrustment of certain functions by Tax
Recovery Officer:-
A Tax Recovery Officer may,
with the previous approval of the [9] [oint] Commissioner, entrust any of his functions as the
Tax Recovery Officer to any other officer lower than him in rank (not being
lower in rank than an Inspector of Income-tax) and such officer shall, in
relation to the functions so entrusted to him, be deemed to be a Tax Recovery
Officer.]
PART II
ATTACHMENT AND
Attachment
20.
Warrant:-
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.
21.
Service of copy of warrant:-
The officer shall cause a
copy of the warrant to be served on the defaulter.
22.
Attachment:-
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.
23. Property
in defaulter's possession:-
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.
24.
Agricultural produce:-
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.
25.
Provisions as to agricultural produce under attachment:-
(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; [10] [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.
26.
Debts and shares, etc:-
(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.
27. Attachment
of decree:-
(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 [11] [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 [12] [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 [13] [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.
28.
Share in movable property:-
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.
29.
Salary of Government servants:-
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.
30.
Attachment of negotiable instrument:-
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.
31.
Attachment of property in custody of court or public officer:-
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 14[14] [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.
32.
Attachment of partnership property:-
(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.
33.
Inventory:-
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.
34.
Attachment not to be excessive:-
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.
35.
Seizure between sunrise and sunset:-
Attachment by seizure shall
be made after sunrise and before sunset and not otherwise.
36.
Power to break open doors, etc:-
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.
38.
Issue of proclamation:-
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.
39.
Proclamation how made:-
(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.
42.
Special provisions relating to growing crops:-
(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.
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.
45.
Irregularity not to vitiate sale, but any person injured may sue:-
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.
46.
Negotiable instruments and shares in a corporation:-
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.
47.
Order for payment of coin or currency notes to the 15[15] [Assessing]
Officer:-
Where the property attached
is current coin or currency notes, the Tax Recovery Officer may, at any time during
the continuance of the attachment, 16[16] [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
48.
Attachment:-
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.
49.
Service of notice of attachment:-
A copy of the order of
attachment shall be served on the defaulter.
50.
Proclamation of attachment:-
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.
51.
Attachment to relate back from the date of service of notice:-
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.
53.
Contents of proclamation:-
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; 17[17] [* * *]
18[18] [(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.
54.
Mode of making proclamation:-
(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.
55.
Time of sale:-
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:
19[19] [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.]
57.
Deposit by purchaser and resale in default:-
(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.
58.
Procedure in default of payment:-
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.
59.
Authority to bid:-
20[20] [(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 21[21] [Assessing]
Officer, if so authorised by the 22[22] [Chief
Commissioner or Commissioner] in this behalf, to bid for the property on behalf
of the Central Government at any subsequent sale.]
23[23] [(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.
24[24] [(3) Where the 25[25] [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;]
60.
Application to set aside sale of immovable property on deposit:-
(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—
26[26] (a) 27[27] [* * *] 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 28[28] [one and
one-fourth per cent for every month or part of a month], 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.
61.
Application to set aside sale of immovable property on ground of non-service of
notice or irregularity:-
Where immovable property
has been sold in execution of a certificate, 29[29] [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.
62.
Setting aside sale where defaulter has no saleable interest:-
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.
63.
Confirmation of sale:-
(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.
64.
Return of purchase money in certain cases:-
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.
66.
Postponement of sale to enable defaulter to raise amount due under certificate:-
(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.
67.
Fresh proclamation before re-sale:-
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.
68.
Bid of co-sharer to have preference:-
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.
30[30] [68A. Acceptance of property in satisfaction
of amount due from the defaulter:-
(1)
Without prejudice to the provisions
contained in this Part, an 31[31] [Assessing]
Officer, duly authorised by the 32[32] [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 33[33] [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 34[34] [Assessing]
Officer and on the date the possession of the property is delivered to the 35[35] [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 36[36] [Assessing]
Officer to the defaulter within a period of three months from the date of
delivery of possession of the property and where the 37[37] [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 38[38] [one-half per cent for every month or part of
a month] to the defaulter on such amount.]
39[39] [68B. Time limit for sale of attached
immovable property:-
(1)
No sale of immovable property shall
be made under this Part after the expiry of three years40[40] from the end of the financial year in which the order
giving rise to a demand of any tax, interest, fine, penalty or any other sum,
for the recovery of which the immovable property has been attached, has become
conclusive under the provisions of section 245-I or, as the case may be, final
in terms of the provisions of Chapter XX:
Provided that where
the immovable property is required to be re-sold due to the amount of highest
bid being less than the reserve price or under the circumstances mentioned in
rule 57 or rule 58 or where the sale is set aside under rule 61, the aforesaid
period of limitation for the sale of the immovable property shall stand
extended by one year.
(2) In computing the period of limitation
under sub-rule (1), the period—
(i) During which the levy of the aforesaid tax,
interest, fine, penalty or any other sum is stayed by an order or injunction of
any court; or
(ii) During which the proceedings of attachment or
sale of the immovable property are stayed by an order or injunction of any
court; or
(iii) Commencing from the date of the presentation of
any appeal against the order passed by the Tax Recovery Officer under this
Schedule and ending on the day the appeal is decided,
Shall be excluded:
Provided that where immediately
after the exclusion of the aforesaid period, the period of limitation for the
sale of the immovable property is less than 180 days, such remaining period
shall be extended to 180 days and the aforesaid period of limitation shall be
deemed to be extended accordingly.
(3) Where any immovable property has been
attached under this Part before the 1st day of June, 1992, and the order giving
rise to a demand of any tax, interest, fine, penalty or any other sum, for the
recovery of which the immovable property has been attached, has also become
conclusive or final before the said date, that date shall be deemed to be the
date on which the said order has become conclusive or, as the case may be,
final.
(4) Where the sale of immovable property is
not made in accordance with the provisions of sub-rule (1), the attachment
order in relation to the said property shall be deemed to have been vacated on
the expiry of the time of limitation specified under this rule.]
PART IV
APPOINTMENT OF RECEIVER
69.
Appointment of receiver for business:-
(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.
70.
Appointment of receiver for immovable property:-
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.
71.
Powers of receiver:-
(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.
72.
Withdrawal of management:-
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
73.
Notice to show cause:-
(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 41[41] [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 42[42] [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.
43[43] [(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 44[44] [this rule] shall
be brought before the Tax Recovery Officer 45[45] [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.
46[46] [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.]
74.
Hearing:-
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 47[47] [the Tax Recovery
Officer shall give the defaulter] an opportunity of showing cause why he should
not be committed to the civil prison.
75.
Custody pending hearing:-
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.
76.
Order of detention:-
(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.
77.
Detention in and release from prison:-
(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
48[48] [(ii) On the request of the Tax Recovery Officer on any ground
other than the grounds mentioned in rules 78 and 79.]
[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. It was amended by the Direct
Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.]
(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 re-arrested
under the certificate in execution of which he was detained in the civil
prison.
78.
Release:-
(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.
79.
Release on ground of illness:-
(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 there from 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 re-arrested, but the period of his detention in the civil prison
shall not in the aggregate exceed that authorised by rule 77.
80.
Entry into dwelling house:-
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.
81.
Prohibition against arrest of women or minors, etc:-
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
82.
Officers deemed to be acting judicially:-
Every 49[49] [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, 185050[50] (18 of 1850).
83.
Power to take evidence:-
Every 51[51] [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.
84.
Continuance of certificate:-
No certificate shall cease
to be in force by reason of the death of the defaulter.
85.
Procedure on death of defaulter:-
52[52] [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.
86.
Appeals:-
53[53] [(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.
54[54] [(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.]
87.
Review:-
Any order passed under this
Schedule may, after notice to all persons interested, be reviewed by the 55[55] [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.
88.
Recovery from surety:-
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.
[89. Penalties:-
Omitted by the Direct
Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989.]
90.
Subsistence allowance:-
(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 56[56] [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.
91.
Forms:-
The Board may prescribe the
Form to be used for any order, notice, warrant, or certificate to be issued
under this Schedule.
92.
Power to make rules:-
(1)
The Board may make rules,
consistent with the provisions of this Act, regulating the procedure to be
followed by 57[57] [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 58[58] [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.
93.
Saving regarding charge:-
Nothing in this Schedule
shall affect any provision of this Act where under the tax is a first charge
upon any asset.
59[59] [94. Continuance of certain pending
proceedings and power to remove difficulties:-
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 (4 of
1988) 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
60[60] [Assessing]
Officer under section 222 before such amendment shall be deemed to be a
certificate drawn up by the Tax Recovery Officer under that section after such
amendment, and, if any difficulty arises in continuing the said proceedings,
the Board may issue (whether by way of modification, not affecting the
substance of any rule in this Schedule or otherwise) general or special orders
which appear to it to be necessary or expedient for the purpose of removing the
difficulty.]
[1]Substituted for "[See section 222]" by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[2]Substituted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. It was amended by the Direct Tax Laws (Amendment) Act, 1989,
w.r.e.f. 1-4-1988.
[3]Substituted for "When a certificate has been
received by the Tax Recovery Officer from the Assessing Officer" by
the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. The italicised word
was substituted for "Income-tax" by the same Amendment Act, w.r.e.f.
1-4-1988.
[4]Substituted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. Earlier, rule 8 was amended by the Direct Tax Laws (Amendment)
Act, 1989, w.r.e.f. 1-4-1988.
[5]Substituted for "Assessing" by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f. 1-4-1989, which was substituted for
"Income-tax" by the same Amendment Act, w.r.e.f. 1-4-1988.
[6]The words "duly filed under this Act" omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[7]Substituted for "Assessing" by the Direct Tax
Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, which was substituted for
"Income-tax" by the same Amendment Act, w.r.e.f. 1-4-1988.
[8]Substituted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. Earlier, rule 19A was inserted by the Finance Act, 1963,
w.r.e.f. 1-4-1962 and amended by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
[9]Substituted for "Deputy" by the Finance (No. 2) Act, 1998,
w.e.f. 1-10-1998.
[10]Substituted for "and the Assessing Officer shall
bear such sum as the Tax Recovery Officer shall require in order to
defray" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. The
italicised word was substituted for "Income-tax" by the same Amendment
Act, w.r.e.f. 1-4-1988.
[11]Substituted for "Assessing" by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f. 1-4-1989, which was substituted for
"Income-tax" by the same Amendment Act, w.r.e.f. 1-4-1988.
[12]Ibid.
[13]Ibid.
[14]Substituted for "Assessing" by the Direct Tax Laws (Amendment)
Act, 1989, w.e.f. 1-4-1989, which was substituted for "Income-tax" by
the same Amendment Act, w.r.e.f. 1-4-1988.
[15]Substituted for "Income-tax" by the Direct Tax
Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[16]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. The italicised word was substituted for "Income-tax" by the
same Amendment Act, w.r.e.f. 1-4-1988.
[17]The word "and" omitted by the
Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[18]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
[19]Ibid.
[20]Ibid.
[21]Substituted for "Income-tax" by the Direct Tax
Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[22]Substituted for "Commissioner" by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[23]Inserted by the Direct Tax Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
[24]Inserted by the Taxation Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[25]Substituted for "Income-tax" by
the Direct Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[26]See rule 119A.
[27]The words "for payment to the Assessing Officer"
omitted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. The
italicised word was substituted for "Income-tax" by the same
Amendment Act, w.r.e.f. 1-4-1988.
[28]Substituted for "fifteen per cent per annum" by the Finance
Act, 2007, w.e.f. 1-4-2008. Earlier, "fifteen" was
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, 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"
for "six" by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[29]Substituted for "the Assessing Officer" by the Direct
Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. The italicised word was
substituted for "Income-tax" by the same Amendment Act, w.r.e.f.
1-4-1988.
[30]Inserted by the Taxation Laws (Amendment) Act, 1975,
w.e.f. 1-10-1975.
[31]Substituted for "Income-tax" by the Direct Tax
Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[32]Substituted for "Commissioner" by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[33]Substituted for "Income-tax" by the Direct Tax
Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[34]Ibid.
[35]Ibid.
[36]Substituted for "Income-tax" by the Direct Tax
Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[37]Ibid.
[38]Substituted for "six per cent per annum" by the
Finance Act, 2007, w.e.f. 1-4-2008. Earlier, "six" was
substituted for "eight" by the Taxation Laws (Amendment) Act, 2003,
w.e.f. 8-9-2003. Earlier, "eight" was substituted for
"nine" by the Finance Act, 2002, w.e.f. 1-6-2002 which was
substituted for "twelve" by the Finance Act, 2001, w.e.f. 1-6-2001.
[39]Inserted by the Finance Act, 1992, w.e.f. 1-6-1992.
[40]Extended to four years: Notification No. 9995, dated 1-3-1996.
[41]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.
[42]Ibid.
[43]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-10-1975.
[44]Substituted for "sub-rule (2) or sub-rule (3)" by
the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[45]Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[46]Ibid.
[47]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.
The italicised word was substituted for "Income-tax" by the Direct
Tax Laws (Amendment) Act, 1989, w.r.e.f. 1-4-1988.
[48]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989. Clause (ii) was amended by the Direct Tax Laws (Amendment)
Act, 1989, w.r.e.f. 1-4-1988.
[49]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.
[51]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.
[52]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. Earlier, the italicised
word was substituted for "Income-tax" by the same Amendment Act,
w.r.e.f. 1-4-1988.
[53]Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989. Earlier, rule 86 was 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.
[54]Substituted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. It was inserted by the Finance (No. 2) Act, 1971, w.e.f.
1-1-1972.
[55]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.
[56]Substituted for "Assessing" by the Direct Tax Laws
(Amendment) Act, 1989, w.e.f. 1-4-1989, which was substituted for
"Income-tax" by the same Amendment Act, w.r.e.f. 1-4-1988.
[57]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.
[58]Ibid.
[59]Inserted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989.
[60]Substituted for "Income-tax" by the Direct Tax Laws
(Amendment) Act, 1989, w.r.e.f. 1-4-1988.