Report No. 12

235. Other modes of recovery.-

(1) Notwithstanding the issue a certificate to the Collector under section 231 [46(2) main para], the Income-tax Officer may recover the tax by any one or more of the modes provided in this section.

[Section 46, Explanation, latter half, part]

(2) If any assessee is in receipt of any income chargeable under the head "Salaries", the Income-tax Officer may require any person paying the same to deduct from any payment subsequent to the date of such requisition any arrears due from such assessee, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Government, or as the Central Board of Revenue directs.

Salary exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made under this sub-section.

[Section 46(5)]

(3)(i) The Income-tax Officer may, at any time from time to time, by notice in writing , require any person from whom money is due or may become due to the assessee or any person who holds or may subsequent hold money for or on account of the assessee, to pay to the Income-tax Officer either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the assessee in respect of arrears or the whole of the money when it is equal to or less) than that amount.

[Section 46(5A), 1st para., part]

(ii) A copy of the notice shall be forwarded to the assessee at his last address known to the Income-tax officer.

[Section 46(5A), 1st para., part]

(iii) Where a person to whom a notice under this sub-section is sent objects to it on the ground that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be , if the Income-tax Officer is satisfied about the correctness of such objection.

[Section 46(5A), 6th para.]

(iv)The Income-tax Officer may at any time or from time to time amend or revoke any notice issued under this sub-section or extend the time or making any payment in pursuance of such notice.

[Section 46(5A), 2nd para.]

(v) The Income-tax Officer shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section, and the person so paying shall be fully discharged from his liability to the assessee to the extent of the amount so paid.

[Section 46(5A), 3rd para.]

(vi) Any person discharging any liability to the assessee after receipt of a notice under this sub-section shall be personally liable to the Income-tax Officer to the extent of his own liability to the assessee so discharged or to the extent of the assesee's liability for tax, interest and penalties, whichever is less.

[Section 46(5A), 4th para.]

(vii) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Income-tax Officer, further proceedings may be taken against him for the realisation of the amount as if it were an arrear of tax due from him, in the manner provided in sections 231 to 234 [section 46(2)], and the notice shall have the , same effect as an attachment of a debt by the Collector in exercise of his powers under section 231 [46(2)].

[Section 46(5A), 5th para.]

(4) The Income-tax Officer may apply to the court in whose custody there is money belonging to the assessee for payment to him of the entire amount of such money, or, if it is more than the tax due, an amount sufficient to discharge the tax.

(5) The Income-tax Officer may, if so authorised by the Commissioner, proceed to recover the tax by distraint and sale of the movable property of the assessee in the manner laid in the Third Schedule.

[Section 46(3) and (4)]