Report No. 12
234. Amendment or cancellation or withdrawal of certificate.-
(1) Notwithstanding that a certificate has been issued to the Collector for the recovery of any tax, the Income-tax Officer may grant time for the payment of the tax and thereupon the Collector shall stay the proceedings until the expiry of the time so granted.
(2) Where a certificate for the recovery of tax has been issued, the Income-tax Officer shall keep the Collector informed of any tax paid or time granted for payment, subsequent to the issue of such certificate.
(3) Where the order giving rise to a demand of tax for which a certificate for recovery has been issued has been reduced in appeal or other proceeding under this Act but is the subject-matter of further proceeding, the Income-tax Officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction, for the period for which the appeal of other proceeding remain pending.
(4) Where a certificate for the recovery of tax has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the Income-tax Officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the case may be.